Difference between bills of exchange and promissory note
| Sr. No | Bill of Exchange | Promissory Note |
|---|---|---|
| 1 | Bill of exchange is an unconditional order to pay. | Promissory note is a promise to pay certain sum of money. |
| 2 | There are 3 parties involved in bill of exchange. | There are 2 parties in promissory note. |
| 3 | Parties name are Drawer, Drawee and Payee. | Parties are Maker and Payee. |
| 4 | In a bill of exchange, bill is paid by acceptor (who accept the bill). | In promissory note, promise amount is paid by maker. |
| 5 | Bill is drawn by creditor. | Promissory note is made by debtor. |
| 6 | In a bill of exchange, the drawer and payee may be same person. | In promissory note maker and payee can not be the same person. |
| 7 | Bill of exchange can be accepted conditionally. | Promissory note cannot be made conditionally. |
| 8 | In a bill of exchange, notice of dishonor must be given. | Notice of dishonor is not required in case of promissory note. |