BILLS OF EXCHANGE VS CHEQUE

PARTICULARS BILL OF EXCHANGE CHEQUE 
MEANING   
   
A bill of exchange is a negotiable instrument which orders to drawee to pay a fixed amount of money to payee on demand The Cheque is a document which contains an order to a bank to pay fixed amount of money from the account of the client. 
EXISTENCE 
     
 
A bill of exchange exists in section 5 of the negotiable instruments act, 1881. A cheque exists in section 6 of the Negotiable Instruments Act, 1881. 
GRACE PERIOD 
     
 
A bill of exchange has three days of grace period. A cheque has no grace period once it is presented for the payment.   
APPORVED 
     
 
A bill of exchange needs an approval from the drawee for the payment. A Cheque does not need any approval from the parties before presented for payment   
VALIDITY 
     
 
A bill of exchange has no validity for the payment.   A cheque has a validity of 3 months. 
LIABILITY     In the bill of exchange, the parties who do not get notice of dishonour are free from the liability of paying. Parties remain liable to pay also in case notice of dishonour is not given. 
NOTICE OF DISHONOUR 
     
 
In a bill of exchange, notice of dishonour is mandatory. In cheque, notice of dishonour is not compulsory. 

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