A bill of exchange is different from a cheque in which of the following contexts?

(a) Cheque is payable on demand but BoE can be payable on demand or in future. (b) Cheque is drawn on a specific bank and a bill of exchange can be drawn on a bank or some other person also. (c) BoE can be endorsed and crossed but a cheque cannot. (d) When cheque is dishonoured, notice of dishonor need not be sent to drawer but in case of BoE, it is required to make him liable.

Correct Answer: a, b and d are correct ‘Cheque’ is an instrument which contains an unconditional order, drawn on a banker, directing to pay a certain sum of money to the person whose name is specified in the instrument. ‘Bill of Exchange’ is a document containing an unconditional order, directing a person to pay a certain amount to a specified person. These two terms sound the same, which becomes the cause of confusion for many people. A cheque can be endorsed or crossed.