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What is promissory note |
| Answer» According to the Negotiable Instruments Act 1881,”a promissory note is defined as an instrument in writing (not being a bank note or a currency note), containing an unconditional undertaking signed by the maker, to pay a certain sum of money only to or to the order of a certain person, or to the bearer of the instrument”.This definition mean that when a person gives a promise in writing to pay a certain sum of money unconditionally to a certain person or according to his order the document is called is a promissory note.\xa0Following are the features of a promissory note:\tIt must be in writing\tIt must contain an unconditional promise to pay.\tThe sum payable must be certain.\tIt must be signed by the maker.\tThe maker must sign it.\tIt must be payable to a certain person.\tIt should be properly stamped.A promissory note does not require any acceptance because the maker of the promissory note himself promises to make the payment.\tAshok Kumar New DelhiRs. 30,000 01 April, 2006Three months after date I promise to pay Sh. Harish Chander or order a sum of Rupees Thirty Thousand only for value received.StampToHarish Chander Ashok Kumar24, Ansari Road 2, Dariba KalanDarya Ganj Candani ChowkNew Delhi 110 002 Delhi 110 006\t | |