Although checks, bills of exchange and promissory notes all have the general characteristics of bills of exchange, they also have obvious differences, mainly in the following aspects:
(1) Parties.
Both bills of exchange and checks have three basic parties, namely the drawer, the payee and the payee; while the basic parties of a promissory note are only two, namely the drawer and the payee. The payee of a promissory note is the drawer himself.
(2) Nature of securities.
Both bills of exchange and checks are securities that entrust others to pay, so they are entrusted payment securities; while promissory notes are bills that the drawer pays himself, so they are self-payment securities or commitment securities.
(3) Maturity date.
All checks are payable on sight; while bills of exchange and promissory notes, in addition to being payable on sight, can also record different maturity dates, such as payment on a fixed date, payment at a fixed period after issuance and payment at a fixed period after sight. Documentary bills of exchange used in international payment settlements also record payment at a fixed period after the date of issuance of the transport document.
(4) Acceptance.
A time bill of exchange requires the payee to go through the acceptance formalities. Since the drawer of a promissory note is responsible for guaranteeing payment when it is issued, there is no need to present it for acceptance. However, a bill payable at a fixed time after sight must be seen by the drawer to determine the due date. Therefore, it is necessary to present the bill on sight, i.e., “sign on sight”. All checks are payable at sight, so there is no need for acceptance.
(5) The relationship between the drawer and the payee.
The drawer of a bill of exchange has no legal constraints on the payee. Whether the payee is willing to accept or pay is the payee’s own independent behavior. However, once accepted, the acceptor shall bear the absolute responsibility for payment upon maturity. The payee of a promissory note is the drawer himself. Once issued, the drawer shall bear the payment responsibility; the payee of a check shall only be obliged to pay if the drawer has a deposit with the payee sufficient to pay the check amount.