Nine differences between a promissory note and a bill of exchange
The points of distinction between a promissory note and a bill of exchange are as follows:1. Number of parties:In a promissory note there are two parties the maker of the note and the payee. In a bill of exchange there are three parties the drawer, the drawee and the payee. ADVERTISEMENTS: 2. The maker of a note cannot be the payee. In the case of a promissory note the maker cannot be the payee for the simple reason that the same person cannot be both the promisor and the promisee. But in a bill of exchange the drawer and the payee may be one and the same person as where a bill is drawn “Pay to me or my order.” Image Source: image.slidesharecdn.com3. Promise and order: ADVERTISEMENTS: In a promissory…