Learning Curve…

MBA – PM0051 : What is the distinction between cheque and bill of exchange.

Posted on: March 14, 2012

 

MBA – PM0051 : What is the distinction between cheque and bill of exchange.

Answer :- A cheque differs from a bill of exchange in the following respects:
1. Drawee:
A cheque is always drawn on a bank or a banker while a bill of exchange can be drawn on any person including a banker.
2. Acceptance:
A cheque does not require any acceptance while a bill must be accepted before the drawee can be made liable upon it.
3. Payment:
A cheque is payable immediately on demand without any days of grace, but a bill of exchange is normally entitled to three days of grace unless it is payable on demand.
4. Crossing:
A cheque may be crossed but there is no such provision in the case of a bill of exchange.
5. Notice of dishonor:
When a cheque is not met, notice of dishonor is not necessary. Want of assets in the hands of the banker is sufficient notice. It is necessary to give a notice of dishonor in order to make the drawer of a bill liable.
6. Payable to bearer on demand:
A cheque can be drawn payable to bearer on demand. But a bill of exchange cannot be so drawn.
7. Stamp:
A bill of exchange must be stamped, whereas a cheque does not require any stamp.
8. Countermanding payment:
A cheque may be revoked by countermand of payment. The payment of a bill, however cannot be countermanded.
9. Noting and protesting:
A cheque is not noted or protested for dishonor and is generally inland.
10. Presentment:
A bill of exchange must be duly presented for payment otherwise the drawer will be discharged. The drawer of a cheque is not discharged by failure of the holder to present it in due time unless the drawer has sustained damage by the delay.
11. Protection:
A banker is given statutory protection with regard to payment of cheques in certain circumstances. No such protection is available to the drawee or acceptor of a bill of exchange.

 

About these ads

1 Response to "MBA – PM0051 : What is the distinction between cheque and bill of exchange."

Thank you very much. This site was very helpful for me to complete mb0050 0051.too bad our electives are different.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Author

Learning days (Calendar)

March 2012
M T W T F S S
« Feb   Apr »
 1234
567891011
12131415161718
19202122232425
262728293031  

Knowledge Bank (Archives)

I am on Twitter

Blog Stats

  • 340,066 hits

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Join 39 other followers

Follow

Get every new post delivered to your Inbox.

Join 39 other followers

%d bloggers like this: