Differentiate Between Bill of Exchange and Promissory Note.

| Basis | Bill of Exchange | Promissory Note | | --- | --- | --- | | Drawer | It is drawn by the creditor | It is drawn by the debtor | | Order or Promise and Parties | It contains an order to make payment. There can be three parties to it, viz. the drawer, the drawee and the payee. | It contains a promise to make payment. There are only two parties to it, viz. the drawer and the payee. | | Acceptance | It requires acceptance by the drawee or someone else on his behalf. | It does not require any acceptance. | | Payee | Drawer and payee can be the same party | Drawer cannot be the payee of it | | Notice | In case of its dishonour due notice of dishonour is to be given by the holder to the drawer | No notice needs to be given in case of its dishonour |