Cheque and Promissory note are the two key types of negotiable instrument that are used in daily business transactions. In order to use the particular type of instrument, it is vital to know the differences between Cheque and Promissory note.
| Promissory Note | Cheque |
| 1. it contains a promise to pay the payee. 2. promissiory note becomes payable at a fixed date or on demand. 3. This instrument cannot be crossed. If this is done, it becomes invalid. 4. The maker and the payee are the only parties in promissory note transactions. | 1. Cheque is drawn over a specific banker to pay the payee. 2. On the other hand, cheque becomes payable on the demand only. 3. Cheques are usually crossed to make the payment. 4. When cheques are used, there may be as many three parties involved. That is, drawer, drawee and the payee. |