1. Promissory note
The definition of promissory note in the “Law of the People’s Republic of China on Negotiable Instruments” is: a promissory note is a note issued by the drawer, promising to pay a certain amount to the payee or holder unconditionally upon presentation of the note.
The provisions of the bill of exchange laws of various countries on the content of promissory notes are not completely consistent, but they basically include: ① the words “promissory note”; ② unconditional payment commitment; ③ the name of the payee or his designated person or person; ④ the payment period; ⑤ the place of payment; ⑥ the date and place of issue; ⑦ a certain amount; ⑧ the signature of the drawer.
The similarities and differences between promissory notes and bills of exchange:
(1) A promissory note is an unconditional payment commitment, while a bill of exchange is an unconditional payment order. The drawer of a promissory note issues and pays the bill himself, which is a promise-type bill. A bill of exchange is a written payment order from the drawer requiring the payee to pay the payee unconditionally. The payee has no obligation to pay the bill unless he accepts the bill of exchange, so a bill of exchange is an imperative or commission-type bill.
(2) The parties are different. There are only two basic parties to a promissory note: the drawer and the payee; there are three basic parties to a bill of exchange: the drawer, the payee and the payee.
(3) The drawer of a promissory note is the payee, so a long-dated promissory note does not need to be presented for acceptance; while a long-dated bill of exchange needs to be presented for acceptance by the holder.
(4) The drawer of a promissory note is the principal debtor from beginning to end, while the bill of exchange is the principal debtor before acceptance and endorsement, and then the subordinate debtor.
(5) Only one promissory note can be issued, while a bill of exchange can be issued in sets.
(6) The provisions on bills of exchange and bill transactions are applicable to promissory notes.
2. Checks
The definition of a check in the “Law of the People’s Republic of China on Negotiable Instruments” is: a check is a bill issued by the drawer, and the bank or other financial institution entrusted with the check deposit business unconditionally pays a certain amount to the payee or holder upon sight of the check.
Ancha has the basic parties, namely the drawer, the payee and the payee. The difference between a check and a bill of exchange:
(1) A check must be payable immediately and has no expiration date; a bill of exchange can be payable on sight or in the future.
(2) A check does not have billing or guarantee, but such billing is applicable to bills of exchange.
(3) The payee of a check is limited to a bank; the payee of a bill of exchange can be a bank, an enterprise or an individual.
(4) There must be a financial relationship between the drawer and the payee of a check, but this is not necessarily the case with a bill of exchange.
(5) A check can only be used as a settlement tool; a bill of exchange can be used as a settlement tool or a credit tool.
(6) There is only one check, but a bill of exchange can be in multiple copies.