Following is the distinction between trade and accommodation bill:
- There are drawn for trade purposes.
- These are drawn against proper consideration.
- These bills are proof of debt.
- For obtaining the debt from drawee, drawee can resort to legal action.
- These are drawn and accepted for financial assistance.
- These are drawn in the absence of any consideration.
- These bills are not a proof of debt.
- Legal action cannot be resorted the recovery of amount against these bills by the immediate parties.
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