Question
Write one distinction between bill of exchange and promissory note.
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Basis
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Bill of Exchange
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Promissory Note
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1.
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Drawer
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Creditor is the Drawer.
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Debtor is the Drawer
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2.
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Order/ Promis
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It is an order to pay.
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It is a promise to pay.
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3.
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Acceptance
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It needs acceptance by the Drawee
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It does not need acceptance by the Drawee
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4.
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Parties
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It has three parties namely-Drawer, Drawee and Payee.
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It has two parties namely-Promisor and Payee
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5.
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Liability
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Liability of the drawee arises only if the acceptor does not pay.
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Promisorhas the primary liabliity to pay.
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6.
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Copies
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In case of foreign bills, three copies are made but otherwise only copy is prepared.
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Only one copy is prepared whether it is forwign or local.
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7.
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Stamp
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Bill Payable on demand need not to be stamped but otherwise stamps would be necessary.
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It has to be stamped in ary case.
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