Meaning of bill of exchange and promissory note: A bill of exchange is an acknowledgement of debt given by one person to another, incorporating all the terms and conditions of payments. A promissory note is an undertaking in writing given by the debtor to the creditor to pay the latter a certain sum of money in accordance with the conditions stated therein.

Explanation

Bill of Exchange

A bill of exchange could be a binding agreement by one party to pay a set quantity of money to a different party on a planned date or on demand.


Promissory Notes

A certificate of indebtedness could be a agreement to pay a selected quantity at a future date or on demand to a selected party. this might be a group date or a date chosen by the investor. Acceptance isn't needed in speech act notes as a result of the maker of the speech act notes himself/herself guarantees to form the payment.


Some key options of speech act notes area unit as follows,


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