Short Answer Questions · Q2
Q.Write two points of distinction between bills of exchange and promissory note.
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✓ Free question
Two differences: who draws it (creditor vs debtor) and whether acceptance is needed (yes vs no).
| Basis | Bill of Exchange | Promissory Note |
|---|---|---|
| Who draws it | The creditor (seller). | The debtor (buyer). |
| Acceptance | Requires acceptance by the drawee. | Requires no acceptance. |
| Parties | Three (drawer, drawee, payee). | Two (maker, payee). |
✓Final answer
(1) A bill of exchange is drawn by the creditor, a promissory note by the debtor. (2) A bill requires acceptance by the drawee, a promissory note requires no acceptance.
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