Difference – Cheque & Bill of Exchange

Sr. No. Cheque Bill of exchange
1 Is always drawn on a printed form Need not be drawn on a printed form
2 The drawee need not accept a cheque. Accordingly there is no privity of the contract between the payee and the banker. Acceptance by the drawee is essential
3 A cheque is always supposed to be drawn against the funds in the hands of the banker There is no such supposition
4 A cheque is an instrument for immediate payment It is drawn for a specified period and so it is intended for circulation. Therefore, it is entitled to days of grace.
5 The liability of the drawer continues for 6 months Unreasonable delay in the presentation will discharge the bill
6 A cheque is free from stamp duty A bill is subject to ad valorem duty
7 It is not drawn in sets Foreign bills are always drawn in sets
8 It may be crossed to ensure safety It cannot be crossed
9 A cheque may be countermanded Countermanding of a bill is not possible
10 It is not protested or noted on dishonor It is usually protested and noted on dishonor
11 In case of dishonor, notice of dishonor to the drawer is not essential Notice of dishonor must be sent to hold the party liable
12 Statutory protection as given under Sec. 85 and Sec.131 of the Negotiable instruments Act applies only to cheques Statutory protection is not available in the case of bills
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