Differences Between Cheque and Bill Of Exchange (BOE)

1. Cheque

1.1. The Cheque is the document which contains an order to the bank to pay a certain amount of money from the account of the customer.

1.2. The cheque is defined in section 6 of the Negotiable Instruments Act, 1881.

1.3. The amount which is mentioned in the cheque is always payable on demand.

1.4. The cheque is not allowed to have any days of grace after the cheque is presented for payment to the bank.

1.5. The Cheque does not need any acceptance from the parties before it is presented for payment.

1.6. The cheques can be crossed to ensure the safety against theft or loss of cheques.

1.7. Notice of dishonor is not necessary in the case of dishonor.

1.8. The parties remain liable to pay even notice of dishonor is not given.

1.9. The cheque is only valid for three months from the date it is issued.

1.10. The cheque is not required to duly stamped by the authority.

1.11. In the cheques, the drawer and receiver are always changeable

1.12. There is no need for acceptance in case of cheque

1.13. Can stop payment in case of a Cheque

1.14. A cheque is payable to the holder on demand

1.15. A cheque is not essential to get approval

2. Bill Of Exchange (BOE)

2.1. The Bill of Exchange is the document which contains an order to drawee to pay a certain amount to the payee on demand or after certain time period.

2.2. Bill of Exchange is defined in Section 5 of the Negotiable Instruments Act, 1881.

2.3. The amount which is mentioned in the bill of exchange may be payable on demand or after a certain time period.

2.4. The Bill of Exchange is allowed to have three days of grace period for payment.

2.5. The Bill of Exchange needs acceptance from the drawee to pay the amount.

2.6. There is no such feature as the crossing of Bill of Exchange.

2.7. Notice of dishonor is necessary in the case of dishonor.

2.8. The parties who does not receive a notice of dishonor can escape the liability to pay.

2.9. There is no such thing as validity in the case of a bill of exchange.

2.10. The Bill of Exchange must be duly stamped as per Indian Stamp Act.

2.11. In the bill of exchange drawer and receiver are the same.

2.12. There is a need for approval in case of a bill of exchange.

2.13. It is not possible to stop payment in case of a bill of exchange.

2.14. A bill of exchange is not payable to the holder on demand.

2.15. A bill of exchange is essential to get support.