Distinguish between Bill and a note Sample Clauses

Distinguish between Bill and a note. In a note there are two parties, the maker & the payee. In a bill there are three parties, the drawer, the drawee & the payee. A note contains an unconditional promise to pay. A bill contains an unconditional order to pay. The maker of a note is the debtor and he himself undertakes to pay. The drawer of a bill is the creditor who directs the drawee to pay. The maker of the note cannot undertake to pay conditionally whereas the acceptor may accept the bill conditionally because he is not the originator of the bill. The liability of the maker of a note is primary and absolute, whereas the liability of the drawer of a bill is secondary and conditional. A note cannot be made payable to the maker himself, whereas in a bill the drawer and the payee may be one and the same person. A note cannot be drawn payable to bearer. A bill can be so drawn.