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----❤️Difference between Promissory note v/s Bill of exchange❤️---

👉A promissory note and a bill of exchange are two financial instruments that are used in commercial transactions to facilitate the transfer of money.

👉While they share similarities in that they both involve a promise to pay, they differ in important ways.

👉A promissory note is a written promise from one party to another to pay a specific sum of money at a set time or on demand.

👉It is often used in lending and credit transactions and involves only two parties, the issuer and the payee.

👉The issuer is responsible for making payments on the promissory note according to the agreed-upon terms until the loan is repaid in full.

👉Promissory notes are non-negotiable instruments, meaning they cannot be transferred to another party.

👉A bill of exchange, on the other hand, is a written order from one party to another to pay a specific sum of money to a third party at a set time or on demand.

👉It is often used in commercial transactions, particularly in international trade, and involves three parties, the drawer, the drawee, and the payee.

👉The drawer is the party that issues the bill of exchange, the drawee is the party that is ordered to pay the amount specified on the bill of exchange, and the payee is the party that is entitled to receive the payment.

👉Bills of exchange are negotiable instruments, meaning they can be transferred from one party to another by endorsement.