No


          Promissory Note

           Bill of exchange 

1

Promissory note contains a promise or undertaking to pay a certain sum of money.   

  According to Section 4 of the Negotiable Instrument Act, 1881, “A “promissory note” is an instrument in writing (not being a bank-note or a currency-note) containing an unconditional undertaking signed by the maker, to pay a certain sum of money only to, or to the order of, a certain person, or to the bearer of the instrument.

Example

 ‘A’ signs instruments in the following terms:

(a) “I promise to Pay B or order Rs.500”.

(b) “I acknowledge myself to be indebted to B in Rs.1,000, to be paid on demand, for value received.”


        In a Bill of exchange one person makes an order to another person to pay a certain sum of money  
   
  According to Section 5 of the Negotiable Instrument Act 1881,  A “bill of exchange” is an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of, a certain person or to the bearer of the instrument.



2

In case of Promissory Note, there are two parties –
1.Maker ; and
2.Payee

There are three parties –
1.Drawer
2.Payee
3.Acceptor


3

The maker of Promissory Note is Debtor

In case of bill of exchange The Maker is Creditor


4

In case of Promissory Note Maker and Payee cannot be the same  person  

The drawer and payee may be the same person


5

Promissory Note is an unconditional promise


Bill of Exchange is an unconditional order

6

Cannot be payable to bearer


Can be payable to bearer

7

Promissory Note can be drawn in sets




Bill can be drawn in sets





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