chapter2Instrumentsininternationalsettlement绪论.ppt

①A promissory note is a promise to pay, whereas a bill of exchange is an order to pay ② There are only two parties to a promissory note, namely the maker and the payee, whereas there are three parties to a bill of exchange, namely the drawer, the drawee and the payee 3 Differences between a promissory note and a bill of exchange ③ The maker is primarily liable on a promissory note, whereas the drawer is primarily liable, if it is a sight bill, and the acceptor becomes primarily liable, if it is a time bill ④ When issued, a promissory note has an original note only, whereas a bill of exchange may be either a sole bill or a bill in a set. Promissory note Bill of exchange A promise to pay An order to pay Two basic parties Three basic parties Maker is primarily liable Sight bill: drawer is primarily liable Accepted usance bill: acceptor is primarily liable An original note In a set or a sole Some expressions 一式两份 duplicate一式三份 triplicate一式四份 quadruplicate [kw?dru:pl?keit] 一式五份 quintuplicate [kw?ntju:pl?keit] 一式六份 sextuplicate [s?kstj?:pl?keit] 一式七份 septuplicate [septju:plikeit] 一式八份 octuplicate [?ktju:plikeit] 一式九份 nonuplicate [n?nju:pl?ke?t]  Examine the following promissory notes. 1、Banker’s promissory note Promissory Note for USD1,000.00 Boston, 4th, June,2002 On demand we promise to pay to the order of bearer the sum of US DOLLARS ONE THOUSAND Payable at Boston For: First National Bank of Boston __________________________ Authorized Signature(s) Exercises 2、Commercial promissory note Promissory note for USD100,000.00 6,Otc. 2002 At SEVENTY DAYS AFTER DATE we promise to pay to the order of bearer the sum of US DOLLARS ONE HUNDDRED THOUSAND Payable AT FULTON NATIONAL BA