Promissory Note vs. Bill of Exchange

Difference between Promissory Note and Bill of Exchange

• Promissory Notes and Bills of Exchange are negotiable instruments governed by the Negotiable Instruments Act, 1881
• They are used in financial transactions to ensure payments, but differ in form, purpose and parties involved.

Legal Definitions of Promissory Note

• Defined under Section 4 of the NI Act, 1881
• An instrument in writing, but not a bank or currency note
• Contains an unconditional undertaking signed by the maker
• Promises to pay a certain sum of money to a specific person, their order, or the instrument's bearer

Legal Definitions of Bill of Exchange

• Defined under Section 5 of the NI Act, 1881
• An instrument in writing containing an unconditional order
• Signed by the maker
• Directs a certain person to pay a certain sum of money to a specific person, their order, or the instrument's bearer

Point-wise Differences:

• Legal Section for Promissory Note: Section 4, NI Act
• Legal Section for Bill of Exchange: Section 5, NI Act
• Promissory Note: A written promise to pay money
• Bill of Exchange: A written order to pay money
• Promissory Note: Has an unconditional promise
• Bill of Exchange: Has an unconditional order
• Promissory Note: Involves two parties, the Maker and Payee
• Bill of Exchange: Involves three parties, the Drawer, Drawee, and Payee
• Promissory Note: Drawn by the Debtor (person who owes money)
• Bill of Exchange: Drawn by the Creditor (person to whom money is owed)
• Promissory Note: No acceptance needed
• Bill of Exchange: Must be accepted by the Drawee
• Promissory Note: The Maker is directly liable
• Bill of Exchange: The Drawee becomes liable only after acceptance
• Promissory Note: Payable on demand or after a certain period
• Bill of Exchange: Usually payable after a specified time
• Promissory Note: Mainly used for loans and personal borrowings
• Bill of Exchange: Commonly used in trade and business transactions
• Promissory Note: Stamp duty is compulsory
• Bill of Exchange: Stamp duty is compulsory
• Promissory Note: Includes an example of one person promising in writing to pay another a certain amount after a certain time
• Bill of Exchange: Includes an example of one person ordering another to pay a certain amount to a third person after a certain time, subject to acceptance

Practical Examples to Differentiate

• A promissory note example showcases one person's promise to pay another a specific amount on a specific date
• A bill of exchange example shows one person directing another to pay a third person a specific amount on a specific date, with the second person needing to accept to be liable

Conclusion:

• Both instruments serve to ensure payments, but their structure and usage differ
• Promissory notes are personal and simple, compared to the more formal and commercial Bills of Exchange
• Knowing these differences helps select the right instrument under the Negotiable Instruments Act, 1881.

Difference between Cheque and Bill of Exchange

• Cheques and Bills of Exchange are negotiable instruments defined under the Negotiable Instruments Act, 1881
• Cheques are a bill drawn on a bank and payable on demand.
• Bills of Exchange can be drawn on any person and payable on demand or after a certain time.

Legal Definitions of Cheque

• Defined under Section 6, NI Act, 1881
• A bill of exchange drawn on a specified banker
• Not expressed to be payable otherwise than on demand

Legal Definitions of Bill of Exchange

• Defined under Section 5, NI Act, 1881
• An instrument in writing containing an unconditional order
• Signed by the maker
• Directs a certain person to pay a certain sum of money only to, or to the order of, or to the bearer of the instrument

Point-wise Differences between Cheque and BOE

• Cheque's Legal Section: Section 6, NI Act
• BOE's Legal Section: Section 5, NI Act
• Cheques are drawn on a bank.
• Bills can be drawn on any person or institution.
• Cheque's Parties: Drawer, Drawee (Bank), Payee
• BOE's Parties: Drawer, Drawee, Payee (Three parties)
• Cheques nature: Always payable on demand
• BOE's nature: May be payable on demand or after a certain time
• Cheques Acceptance: Not required by the bank
• BOE's Acceptance: Drawee must accept to be liable
• Cheque's Stamp Duty: No stamp required
• BOE's: Must be properly stamped
• Cheque's Dishonour Consequences: Criminal liability under Section 138
• BOE's Dishonour Consequences: Only civil remedies available
• Cheques Crossing: Can be crossed (general/special) for added security
• BOE's Crossing: Cannot be crossed
• Cheques Used For: Day-to-day banking transactions
• BOE's Used For: Mainly used in trade and commerce
• Cheque's Validity: Valid for 3 months from date of issue
• BOE's Validity: Valid for period mentioned on the bill (30/60/90 days, etc.)
• Cheques Example: A person issues a cheque from their bank account to another person
• BOE's Example: Seller (A) draws a bill on buyer (B) for ₹50,000 due in 60 days for agreement.

Practical Examples

• A person writes a cheque to another person from their bank account which is then deposited to the other person's account for payment
• A business sells goods worth ₹1,00,000 to another on credit and draws a bill of exchange for the amount, payable in 60 days with agreement

Key Legal Aspect – Section 138 (Dishonour of Cheque):

• Dishonoring a cheque due to insufficient funds may lead to criminal charges
• Dishonoring a bill of exchange only attracts civil liability

Conclusion

• Cheques are simpler, commonly used by individuals, and drawn on banks.
• Bills of exchange is a commercial instrument used in trade for credit transactions.
• Legal and functional differences determine which instrument suits a financial need.

Difference between Cheque and Promissory Note

• Negotiable instruments under the Negotiable Instruments Act, 1881
• Differ in purpose, parties involved, and legal structure

Legal Definitions of Cheque

• Defined under Section 6, NI Act, 1881
• A bill of exchange drawn on a specified banker
• Payable exclusively on demand

Legal Definitions of Promissory Note

• Defined under Section 4, NI Act, 1881
• Instrument in writing, but not a bank or currency note
• Contains an unconditional undertaking signed by the maker
• Promises payment to a specific person, their order, or the instrument's bearer

Point-wise Differences

• Cheque's Legal Section: Section 6, NI Act
• Promissory Note's Legal Section: Section 4, NI Act
• Nature of Instrument: A cheque is a order to pay.
• Promissory Note Instrument: A promise to pay.
• Number of Parties Involved in Cheque and Promissory Note: Three - Drawer, Drawee (Bank), Payee
• Number of Parties involved in Cheque and Promissory Note: Two - Maker and Payee
• Cheques Drawn On: Only on a bank
• Promissory Notes Drawn On: Any person (not banks)
• Cheques Payability: Only on demand
• Promissory Notes Payability: Can be on demand or a certain time
• Cheques Acceptance Required: No acceptance by bank required
• Promissory Note Acceptance Required: No acceptance needed, but signed by the maker
• Cheques Stamp: No stamp duty applicable
• Promissory Notes Stamp: Stamp duty is compulsory under the Indian Stamp Act
• Cheques Liability: Drawer liable if the cheque is dishonored
• Promissory Maker's Liability: Maker has absolute liability to pay
• Cheques: Criminal proceedings under Section 138
• Promissory Notes: Only civil remedy available in case of default
• Cheques Transferability: Transferred by endorsement and delivery
• Promissory Notes Transferability: Transferred similarly, unless marked "Not Negotiable"
• Cheques Crossing Allowed: Can be crossed
• Promissory Notes: Not applicable
• Cheques Example: A person writes a cheque from their bank account to another person.
• Promissory Notes: A writes a promissory note promising to pay B on a specific date.

Examples for Clarity

• Ramesh writes a cheque to Suresh from his bank account, and Suresh deposits it for collection
• A promissory note shows one person (Rahul) promises to pay another person on a specific date

Key Legal Implication – Section 138 (Cheque Dishonour):

• Cheque dishonor due to insufficient funds attracts criminal liability under Section 138 of the NI Act, 1881
• Dishonoring a promissory note leads only to a civil suit for recovery of money

Conclusion:

• Modern banking-based instrument for modern, day-to-day transactions.
• Promissory notes are formal and personal, often used in loan agreements.
• Knowing the difference is important to chose a good instrument for deals.

Patents

• An inventor's exclusive right to an invention that is new, inventive, and industrially applicable
• Governed by the Patents Act, 1970 in India.
• Involves the patentee, the person granted the patent.

Definition of Patent

• Section 2(1)(m), Patents Act, 1970
• "Patent means a patent for any invention granted under this Act"
• Inventions must be novel, inventive, and useful

Rights of Patentee

• Governed by Sections 48 & 49
• Once a patent is granted, the patentee has exclusive rights for 20 years from the filing date
• Subject to renewal and compliance

Exclusive Rights (Section 48)

• The patentee has the power to make, use, offer for sale, sell, or import the patented invention in India.

Right to License

• The patentee can grant patents to those wishing to use the invention for a royalty fee.

Right to Assign

• A patent can be transferred to another person.

Right to Sue for Infringement

• Under Section 104 -The patient can file a civil suit in a District or High Court against anyone who violates patent rights.

Other rights to patent include

• The right to Full Enjoyment for 20 Years
• The patentee can exploit invention for 20 years

Examples to Highlight Patent Rights

• A company develops a new diabetes medicine and is granted a patent.
• With the right to manufacture and sell the drug in India, anyone else copying the formula is sued for infringement.

Obligations of Patentee:

• Patents Act places duties on the patentee to ensure fair use of monopoly rights.

1. Duty to Work the Patent in India (Section 83):

• The patentee must commercialize the invention in India and not hold the patent for monopoly
• If not worked, compulsory licensing may be granted.
• Payment of Renewal Fees (Section 53): The patent is valid for 20 years, but the patentee must pay annual renewal fees to keep it active.
• Disclosure of Invention (Section 10):* Accurate details of the information must be disclosed to the patent office.
• No Misuse of Monopoly (Section 83): The patent must not be used to restrict trade or abuse market power.
• Duty to Mark Product as "Patented": If the patented product is sold, it must be marked as "Patented” along with the patent number.

Compulsory Licensing

• Section 84 of the Patents Act.
• If a patentee does not manufacture the patented product in India, or has high prices another person can apply for compulsory license three years after granted patent.

Example of Compulsory License:

• In 2012 Natco Pharma granted license to produce a cancer drug making it affordable in India.

Conclusion

• Patent rights and the exclusive commercial rights reward inventors investing in creativity. At the same time, law ensures patent monopolies does not harm public interest.

Consumer Dispute Redressal Commission

• The Consumer Protection Act, 2019 establishes a three-tier system in India
• It aims to provide consumers with quick, simple, and inexpensive justice
• Mechanisms deal with complaints about defective goods, deficient services, and unfair trade practices

Legal Basis

• Governed by the Consumer Protection Act, 2019 (replacing the 1986 Act)
• Chapters III and IV of the Act deal with Consumer Disputes Redressal Commissions (CDRCs)

Three-Tier Structure:

1. District Consumer

• Jurisdiction: Up to ₹50 lakhs

2. State Commission

• Jurisdiction: ₹50 lakhs to ₹2 crores

3. National Commission

• Jurisdiction: Above ₹2 crores

District Consumer Disputes Redressal Commission Section 28

• Established by each State Government in their respective districts
• Headed by a President (qualified to be a District Judge) and two members

Functions of the District Consumer Disputes Redressal Commission

• Hears consumer complaints where the value of goods/services is up to ₹50 lakhs
• Orders replacement, refund, or compensation

Example of District Consumer Disputes Redressal Commission

• A consumer purchases a defective washing machine worth ₹45,000
• They can file a case in the District Commission

State Consumer Disputes Redressal Commission Section 42

• Established by each state
• Headed by a President (qualified to be a High Court Judge) and at least four members

Jurisdiction of State Consumer Disputes Redressal Commission

• Monetary: Handles complaints of value between ₹50 lakhs and ₹2 crores
• Appellate: Hears appeals against orders from the District Commission

Example of an appeal to the State Consumer Disputes Redressal Commission

• If the consumer is unsatisfied with the compensation ordered by the District Commision they can appeal

National Consumer Disputes Redressal Commission (NCDRC) Section 53

• Established by the Central Government
• Headed by a President (qualified to be a Supreme Court Judge) and at least four members

Jurisdiction of National Consumer Disputes Redressal Commission Section 53

• Monetary: Handles complaints where the value exceeds ₹2 crores
• Appellate: Hears appeals against orders from the State Commission
• Revisional Jurisdiction: Reviews cases if there is a jurisdictional error by State Commission

Example of an appeal to The National Consumer Disputes Redressal Commission

• A person with a complaint against a luxury vehicle manufacturer for a car worth ₹2.5 crores files the appeal

Other Key Features:

• Consumers can file disputes quickly, easily and efficiently.
• Consumers can file complaints online using the E-Daakhil portal.
• E-filing, video hearings, and no fees for claims up helps those who cannot afford legal representation.
• Appeals for disputes must be filed 30 days upon decision.

Conclusions

• The three tier consumer provides quick and easy resolution based on cost and needs.
• Empowers consumers to seek justice efficiently unfair trade practices.

Electronic Transactions

• Occur when commercial and financial activities are preformed digitally.
• Refers to any interaction used on electronic devices such as mobil devices, computers and the internet.

Definition of E-Transaction

• Electronic actions include data that need not include physical presentation.
• Technology Act, 2000 allows e-transactions to be admissible in court.

Key features of E-Transactions

• Paperless and Digital All information is done in electronic ways.

• Instant and Real Time Funds and information must be delivered within seconds.

• Global Accessibility Can be done anywhere with internet.

• Security Secure using encryption, OTP, or digital signature.

• Automation Reduces manual work with confirmations.

Examples of Transactions

• Online Banking
• Digital Payments
• Online ticketing
• Utility payments

Legal Recognition of E-Transactions

• Under the Technology Act, 2000: -Section 4: Legal recognition of e-records. -Section 5: Recognition of signatures. -Section 10-A: Permits e-contracts. -These sections ensure Transactions are legally binding and enforceable as interactions.

Times of Cost Efficiency and Convenience

• Saves time and reduces operational costs printing paper traveling.
• Can perform 24X7
• Supports government such as Digital Inida.

Transparency and Record Keeping

• Records can be stored easily.

Inclusive Financial Access

• Helps access from rural and remote areas for transactions.

Boost and Commerse

• Has growth scales for places such as Zomato.

-Environmental Benefits

• Lower usage of paper to create eco friendly practices.

Challenges Faced

• Cyber Security threats.
• Lacking in literacy regions.
• Internet issues.

Examples

• A sends 5,000 to B over Google Pay instead of physical bank.

Conclusion

• Technology has revolutionized commerse and banks making essential for daily living activities.

Commerce

• Commerce is the buying and selling of a services over digital platforms.
• Eliminates physical interactions.

Examples

• Shopping
• Payments
• Tickets

Legally Recognized

• E is regonzed under the Technology Act, 2000
• Can see in the Consumer Protection Rules.

Types of E-Commerce

• B2B (business).
• B2C (direct sale from business).
• C2C (selling directly to consumer).

Features

• Digital platform.
• Global Accesibilty.
• No Time Restriction.
• Automated systems.

Significance

• Global market increase.
• Easy convince.
• Reduce cost.

Benefits

• Small business can start up.
• Pandemics cant stop business.
• Goverment can keep revenue.

Challenges

• Digital divid.
• Fake products.
• Safety restictiions.

Example

• A phone seller online to Customer and has it delivered.

Complaint Procedure:

• Introduction: Consumer complaints arise from issues like defective goods or advertising
• Consumer Protection Act of 2019 provides a quick system for reporting these issues to the appropriate Consumer Disputes

Legal Basis:

• Consumer Protection Act of 2019
• Consumer Protection Rules of 2020
• Sections 35-39 details the framework

Complaints Who:

• Can be the consumer
• A recognized consumer association
• Representative of consumer
• Ceneter state goverment
• Multiple buyers

File Reasons:

• Defective goods.
• Deficiency in services.
• Harm results from using unsafe and misleading goods.

Procedure to File Complaints:

• Determine Judistrution
• Base claims and the location to the court to be filed

1. District Commission-Up to 50lakhs.
2. State Commission-50 lakhs till 2crores
3. National over 2crores

Drafting:

• Details includes names and address, the services, what happened, warranty information, and what the compensation will be.

Filing:

• Can be file online using the E-Daakhil or offline.

Fees

• Costs depending.

Section 36 Commision

• Takes 24 days upon admital.

What it holds?

• Each party can submit evidence for commission for review.
• The commision would ask for experts if needed.

Section 39 Order of Commision

• If proven that can be ordered for items can be ordered for goods replacement.

Conclude

• The Consumer Act of 2019 helps for a system that offers safety by protecting the rights.

Copyright and Patent

• Fall under intellectual property
• Provide for protection for inventors
• Copyright protects writing while patents protect tech

Copyright meaning

• Granted to create origin in author
• Covers music, works, art.

Copyright Laws

• 1957 acts.

Patents Covers Right

• Automatic protetion
• Wide range of works such as films, arts eorks, music
• Right to reproduce, distribute and copy

Moral Rights

• Creator must be noted and given credit, with the ability to prevent from altering works.
• Authors life time and 60years after
• Tranferable or sold. Examples- A writer books protect begins at writing so no one can copy or use.

Patents Features Right

For inventors for specific reason.

Legaly by Patents Act, 1970 . and Exclusive Right use and commercial

A patentee the grant of patent by gov to make sell and the invention.

A -Novelty Section 2(1)(3)- The event must be new anywhere to disclose.

Territorial Rights

• Patent is valid in the country.

Section 48 Rights

• Prevent for using or selling using without perimission.

License and assigned

For beneficial reason and to sell or license. Example Someone makes new solar panel they allow no one be able to manufacture or sell it.

Copyright and Patents

• Copyright for art and Patents for innovation.
• Under law act 1970
• Registration non or mandadory with 20 or lifes years.

Conclusion

• Copyright and Patent Laws that are reward and protected for the creator.
• Protect ideas technology playing a vital role.

Trademark Copyright

• Introduction copy and trademark protect intellectual property rights.
• Provides legal protection.

Copyright

• Legal to protect original ideas
• Govering-Copyright 1957
• Protect Work
• Automatically creates.
• Section 14 to adpt to create
• Moral rights Section- Authors have the right to create, protect and prevent. Durian -life of auther and 60 years Example if someone book is out then on one will write.

Trademark

• Desing that help identify

• Trade mark. Key Features: Brand Protections

• Helps with brand and logos.

• Trademark must register with symbol and right Exclusive and Reable

• Right the over over 10 years. Legla Remmdios

-The code over brand

Example if it use a name it will copy Copyright and Trademark

• Copyright or for art brand.

Legal Contrac

• Contract Electronic is agreement with signing a agreement or papers. -Contracts will recgoninzed under Tachnoly with the meeting.
• To govern it can sign acts and 1872

Govering E-Contract

• The India Act contracts1872 Section 10: Essental for contacts

• The Technoology Act 2000

• Section 12 for valality

E-Contract Types

• Click-Wrap- User clicks before the agreement with click wrap -Shrink -Agreement commonly installing
• Bound Agreement -Avalibilte website and have agreed to use.

Speed

• Connection form through website and app
• Parties contact due to different countries.

Cost effective

• Reduced paper with meeting
• Security on signers

Legal Issue

• Unclear contact section with disuputes due the section.
• Trimming case the the seller is Dielhi case, the buyer is where should the cause be done.
• Luck Negotiation Most E contracts are form under which leads unfortinates onesided causes. Conclusion E are vitaal in daily acts
• fraud in security