DIFFERENCE BETWEE
BILLS OF EXCHANGE
CHEQUE
I
, What is Bills Of Exchange ?
According to Section 5 or Negotiable Instrument
Act :
“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.”
, Features of Bills of Exchange
1. It should be in writing.
2. It is an order to make payment.
3. The order of payment is unconditional.
4. It should contain a certain amount to be paid.
5. The date of payment should be certain.
6. The amount must be payable either to a certain person or to his order or to the bear
bills of exchange.
7. It should be paid either on the expiry of a fixed period of time or on demand.
8. Bill of exchange must be signed by its maker.
9. In certain cases, it must be stamped also.
BILLS OF EXCHANGE
CHEQUE
I
, What is Bills Of Exchange ?
According to Section 5 or Negotiable Instrument
Act :
“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.”
, Features of Bills of Exchange
1. It should be in writing.
2. It is an order to make payment.
3. The order of payment is unconditional.
4. It should contain a certain amount to be paid.
5. The date of payment should be certain.
6. The amount must be payable either to a certain person or to his order or to the bear
bills of exchange.
7. It should be paid either on the expiry of a fixed period of time or on demand.
8. Bill of exchange must be signed by its maker.
9. In certain cases, it must be stamped also.
