Question

Distinguish a cheque and a bill of exchange.

Answer 1

No.	Basis of Difference	Bill of Exchange	Cheque
1	Drawn	A Bill of Exchange can be drawn on any person including Banker.	A Cheque can be drawn from a specified Banker.
2	On dishonor	On dishonor, there is a practice of Noting and protesting.	No such things on dishonour.
3	Grace days	3 grace days are allowed to calculate the maturity date.	Grace days are not allowed.
4	Stamping	Sufficiently stamped.	Need not be stamped.
5	Acceptance	Acceptance by the drawee is necessary.	Does not require any acceptance.
6	Notice	Notice of dishonour is necessary.	Notice of dishonour is not necessary.
7	Discounting	It can be discounted.	It cannot be discounted.
8	Validity	A Bill made payable to the bearer on demand is void.	A Cheque drawn payable to the bearer on demand is valid.
9	Payability	It is payable on demand	It is payable after a specified period.