Question

Distinguish between a cheque and bill of exchange.

Answer 1

	Point of Distinction	Cheque	Bill of Exchange
1.	Drawee	A check is always drawn on a banker.	A bill may be drawn on anyone, including a banker.
2.	Acceptance	A cheque does not require acceptance.	A bill has to be accepted by the drawee to make him liable.
3.	Payment and days of grace	A cheque is always payable on demand, and no days of grace are allowed.	A bill is not payable on demand, and three days of grace are allowed.
4.	Copies	A single copy of cheque is used.	A foreign bill is prepared in three copies.
5.	Crossing	A cheque can be crossed.	A bill is not crossed.
6.	Stamping	No stamps are required on a cheque.	A time bill must be stamped.
7.	Countermanding of payment	Payment of a cheque can be countermanded.	Payment of a bill cannot be countermanded.
8.	Liability	A cheque should be presented for payment within a reasonable period, but delay in presentation does not relieve the drawer of his liability.	A bill must be presented for payment on the due date; otherwise, the drawee will be free from its liability.
9.	Notice of dishonour	If the cheque is dishonoured, the holder need not give notice to the drawer.	If the bill is dishonoured, the holder must give notice to the drawer.