A cheque differs from a bill of exchange in the following respects:
1. Drawee:
A cheque is always drawn on a bank or a banker while a bill of exchange can be drawn on any person including a banker.
2. Acceptance:
A cheque does not require any acceptance while a bill must be accepted before the drawee can be made liable upon it.
3. Payment:
A cheque is payable immediately on demand without any
days of grace, but a bill of exchange is normally entitled to three
days of grace unless it is payable on demand.
4. Crossing:
A cheque may be crossed but there is no such provision in the case of a bill of exchange.
5. Notice of dishonor:
When a cheque is not met, notice of dishonor is not
necessary. Want of assets in the hands of the banker is sufficient
notice. It is necessary to give a notice of dishonor in order to make
the drawer of a bill liable.
6. Payable to bearer on demand:
A cheque can be drawn payable to bearer on demand. But a bill of exchange cannot be so drawn.
7. Stamp:
A bill of exchange must be stamped, whereas a cheque does not require any stamp.
8. Countermanding payment:
A cheque may be revoked by countermand of payment. The payment of a bill, however cannot be countermanded.
9. Noting and protesting:
A cheque is not noted or protested for dishonor and is generally inland.
10. Presentment:
A bill of exchange must be duly presented for payment
otherwise the drawer will be discharged. The drawer of a cheque is not
discharged by failure of the holder to present it in due time unless the
drawer has sustained damage by the delay.
11. Protection:
A banker is given statutory protection with regard to
payment of cheques in certain circumstances. No such protection is
available to the drawee or acceptor of a bill of exchange.