We can distinguish or difference between bill of exchange and promissory note by the points :1. Number Of Parties :-
Bill of exchange : There are three parties in the bill of exchange.
Promissory note : There are two parties in the promissory note.
2. Number Written By :-
Bill of exchange : It is written by the creditor.
Promissory note : It is written by the debtor.
3. Order And Promise :-
Bill of exchange : In a bill of exchange it is an order.
Promissory note : In a pro-note it is a promise to make the payment.
4. Acceptance :-
Bill of exchange : It must be accepted by the drawee before.
Promissory note : It requires no acceptance.
5. Dishonour Notice :-
Bill of exchange : In this case notice of dishonour must be given by the holder to the concerned parties.
Promissory note : In case of promissory note there is no need to serve the notice to the maker.
6. Protest :-
Bill of exchange : A foreign bill must be protested in case of dishonour.
Promissory note : Protect is not needed in case of pro-note.
7. In Sets :-
Bill of exchange : A foreign bill can be drawn in sets.
Promissory note : A pro-note cannot drawn in sets.
8. Liability :-
Bill of exchange : The drawer is liable only when the acceptor does not honour the bill.
Promissory note : The liability of pro-note maker is primary.
9. Payable To Bearers :-
Bill of exchange : A bill can be drawn if it is not drawn payable to bearer on demand.
Promissory note : A pro-note can not be drawn payable to the bearer.
10. Drawer and Payee :-
Bill of exchange : In this case drawer or payee may be the same person.
Promissory note : In case of pro-note the drawer can not become the payee.
11. Drawer's Position :-
Bill of exchange : In this case the drawer of accepted bill stands in an immediate relation with the acceptor and not the payee.
Promissory note : The drawer of the pro-note stands immediate relations with the payee.
12. Conditional :-
Bill of exchange : The acceptance of the bill may be conditional with the holders consent.
Promissory note : A pro-note cannot be made conditional.
13. Presentment :-
Bill of exchange : In this case provision relating to presentment for acceptance is applicable.
Promissory note : Such provision is not applicable in case of promissory note.