Question

Define a promissory note and give examples. what are the essentials of a valid promissory note?

Answer 1

Promissory note is a written promise to pay a debt. It is a financial instrument, in which one party (maker or issuer) promises in writing to pay a determinate sum of money to the other (the payee), either at a fixed, determinable future time or on demand of the payee subject to specific terms.

Answer 2

A promissory note is an signed document containing a written promise to pay a stated sum to a specified person or the bearer at a specified date or demand.

Example- "I,Sahil Patil, borrowed Rs.1000 Nikhil Patil, and promise to repay the entire amount by 30 December,2017"

Essentials of a valid promissory note:
It must always be in writing.