8 Most Important Differences between “Bill of Exchange” and “Cheque”
2. Except under certain specified circumstances, a bill of exchange requires acceptance. A cheque does not require any acceptance.
3. A cheque is always payable on demand. The acceptor of a bill of exchange is allowed a grace period of three days, after the maturity of the bill, to make the payment.
4. The drawer of a bill is discharged from liability if the bill is not presented to the acceptor for payment at the due time. But the drawer of a cheque is discharged from his liability only if he suffers damage owing to delay in presenting the cheque for payment.
The holder of a cheque retains it for two after the due date without attempting to cash it. In the meantime the bank goes into liquidation. Had the cheque been presented for payment earlier it would have been paid. Owing to the undue delay in presentation the drawer has lost his money. He is therefore required to pay the holder again. What is undue delay is a question of fact depending on the circumstances of the case.
5. If a bank fails to pay a cheque, it is not necessary to give notice of dishonour to the drawer to make him liable to compensate the payee. In the case of Bills of Exchange, it is necessary to give notice of dishonour, except in certain special cases.
6. A cheque may be crossed; there is no provision for crossing a bill.
7. The payment of a cheque may be countermanded by the drawer. The payment of a bill cannot be countermanded.
8. A cheque does not require any stamp. A bill of exchange (except in certain cases) must be stamped.