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- Drawee :
- Cheque : The drawee of a cheque is always a Bank.
- Bills of Exchange : Any one can be drawee in the case of Bill of Exchange.
- Form :
- Cheque : A cheque is always drawn on a printed form.
- Bills of Exchange : A bill need not be drawn on a printed form.
- Acceptance :
- Cheque : The drawee (banker) need not accept a cheque.
- Bills of Exchange : Acceptance by the drawee is essential.
- Supposition :
- Cheque : A cheque is always supposed to be drawn against the funds in the hands of the banker.
- Bills of Exchange : There is no such supposition.
- Time of Payment :
- Cheque : A cheque is an instrument for immediate payment.
- Bills of Exchange : It is drawn for a specified period and so it is intended for circulation. Therefore it is entitled to days of grace.
- Period of Liability :
- Cheque : The liability of the drawer continues for 6 months.
- Bills of Exchange :Unreasonable delay in the presentation will discharge the bill.
- Stamp Duty :
- Cheque : A cheque is free from stamp duty.
- Bills of Exchange : A bill is subject to stamp duty.
- Sets :
- Cheque : It is not drawn in sets.
- Bills of Exchange :Foreign bills are always drawn in sets.
- Crossing :
- Cheque : It may be crossed to ensure safety.
- Bills of Exchange : It cannot be crossed.
- Countermanding :
- Cheque : A cheque may countermanded.
- Bills of Exchange : Countermanding of a bill is not possible.
- Protest :
- Cheque : It is not protested or noted on dishonor.
- Bills of Exchange : It is usually protested and noted for dishonor.
- Notice of Dishonor :
- Cheque : In case of dishonor, notice of dishonor to the drawer is not essential.
- Bills of Exchange : Notice of dishonor must be sent to hold the party liable.
- Statutory Protection :
- Cheque : Statutory Protection as given under Sec. 85 and Sec. 131 of the Negotiable Instruments Act applies only to cheques.
- Bills of Exchange :Statutory protection is not available in the case of bills.
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