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Questions and Answers
Explain the difference between a bill of exchange and a promissory note.
Explain the difference between a bill of exchange and a promissory note.
A bill of exchange is a written order by one party to another to pay a certain sum of money to a third party on a specific date. A promissory note is a written promise by one party to pay a certain sum of money to another party at a specified future date or on demand.
What is the purpose of a bill of exchange?
What is the purpose of a bill of exchange?
The purpose of a bill of exchange is to facilitate trade and commerce by providing a secure method of payment and credit. It allows parties to transfer funds and settle transactions across international borders.
What are the key characteristics of a promissory note?
What are the key characteristics of a promissory note?
A promissory note is a unconditional promise in writing made by one person to another, signed by the maker, engaging to pay on demand, or at a fixed or determinable future time, a sum certain in money to order or to bearer.
