WHY A CHEQUE IS A BILL OF EXCHANGE

A cheque is a bill of exchange because of the same features it possesses with a bill of exchange. Some of the features are:

  1.  The cheque is an unconditional order lust like a bill of exchange.
  2. Like a bill of exchange, it must be signed by the person who draws it.
  3. The cheque is in writing and not oral.
  4. Like a bill of exchange, the cheque is addressed from one person to another.
  5. The cheque requires the bank to pay a certain sum of money on demand.
  6. The cheque may be made payable to a specified person, or to his order, or- to bearer.
  7. The time of payment is specified in a cheque.

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