Difference between cheque and promissory note

1. Order And Promise :Cheque : It contains order to pay. Promissory note : A promissory note contains promise to pay. 2. Number Of Parties :Cheque : In case of cheque there may be three parties, the drawer, drawee and payee. Promissory note : In case of promissory note are only two parties, the maker and the payee. 3. Object :Cheque : Cheque is used because it is a simple and easy medium of exchange and serving of metalic money. Promissory note : It is used for receiving and giving credit. 4. Crossing :Cheque : A cheque may be crossed. Promissory note : A pro-note cannot be crossed. 5. Payable To Bearer :Cheque : A cheque is often drawn as payable to bearer. Promissory note : A pro-note cannot be drawn payable to bearer. 6. Stop Payment :Cheque : Its payment can be stopped by giving the notice to the bank. Promissory note : A pro-note payment can not be stopped if once issued. 7. Liability Nature :Cheque : In case of cheque when it is dishonored, the drawer is liable. Promissory note : In case of promissory note liability is primary. 8. Use Of Form :Cheque : It is drawn on a printed form issued by a particular bank. Promissory note : Promissory note may be drawn on any paper and there is no need of any particular form. 9. Drawee :Cheque : A cheque is always drawn to a particular bank where account is available. Promissory note : A promissory note can be drawn on any person. 10. Drawer and Payee :Cheque : In case of cheque drawee and payee can be the same person. Promissory note : In case of pro-note there are two parties and maker cannot be the payee.

Difference Between Cheque And Promissory Note

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Promissory Note is a written promise made by one person to pay certain sum of money due to another person or any other legal holder of the document. Whereas A cheque is an unconditional order, in writing addressed by a customer, with signature, to the bank requiring it to pay on demand a certain sum of money to the order of a specified person or to the bearer.

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There are two parties in the promissory note the Maker and the Payee. Whereas in case of cheque, there are three parties the drawer, drawee and payee. In case of Promissory Note, acceptance is not necessary but in case of cheque, acceptance is required before it is presented for payment Promissory note can never be conditional but cheque can be conditional The maker of Promissory Note cannot pay to himself but in case of cheque, drawer can be payee. While a cheque is a one time payment, a promissory note is a promise made to pay back a loan; either in installments or in one go at a later date. Cheque is drawn on a bank whereas promissory note can be made by any individual in favour of another person.

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1. Promissory Note is a written promise made by one person to pay certain sum of money due to another person or any other legal holder of the document. whereas A cheque is an unconditional order, in writing adressed by a customer, with signature, to the bank requiring it to pay on demand a certain sum of money to the order of a specified person or to the bearer. 2. There are two parties in the promissory note - the Maker and the Payee. In case of cheque, there are three parties - the drawer, drawee and payee. 3. In case of Promissory Note, acceptance is not necessary but in case of cheque, acceptance is required before it is presented for payment 4. Promissory note can never be conditional but cheque can be conditional. 5. The maker of Promissory Note cannot pay to himself but in case of cheque, drawer can be payee.