Question

What is promissory note ? Write its features . ​

Answer 1

(^O^)❤HEY MATE❤

(^O^)❤HERE'S YOUR ANSWER❤

Definition of Promissory Note:

“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.”

– Section 4 of the Negotiable Instruments Act, 1881.

In the case of promissory note, a person himself promises in writing to pay a certain sum of money unconditionally or according to a certain person or his order to a certain person. In the case of promissory note, there is no need of acceptance because in this case, the maker himself promises to pay a certain amount. It is worth mentioning that as per Reserve Bank of India Act, promissory note payable to the bearer is illegal.

Features of Promissory Note:

The features of promissory note are:

1. It must be in writing.

2. It must contain an unconditional promise to pay.
. It should be signed by the maker.

4. The payment should be made to a certain person.

5. The certainty of the amount payable should be there.

6. It should be stamped.

Answer 2

$\red{ \huge{ \underline{ \overline{ \mid {\bold{ \purple{ \: \: ANSWER \: \: \red{ \mid}}}}}}}}$

$\underline{ \underline{ \mathbb{ \huge{ \pink{ \: \: PROMISSORY \: \: NOTE \: \: }}}}}$

$\bold{Promissory \: \: note \: \: is \: \: an \: \: instrument \: \: in \: \: writing,} \\ \\ \bold{containing \: \: an \: \: unconditional \: \: undertaking,} \\ \\ \bold{signed \: \: by \: \: the \: \: maker \: \: to \: \: pay \: \: a \: \: certain \: \: sum} \\ \\ \bold{of \: \: money \: \: only \: \: two \: \: or \: \: to \: \: the \: \: order \: \: of \: \: a \: \: } \\ \\ \bold{certain \: \:person \: \: or \: \: to \: \: the \: \: bearer \: . } \\ \\ \bold{ \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: It \: \: is \: \:a \: \: promise \: \: to \: \: make \: \: payment \: .} \\ \\ \bold{There \: \: are \: \: two \: \: parties \: \: involved : - \: \: (i) \: \: Maker} \\ \bold{ \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: (ii) \: \: Payee}$

$\underline{ \underline{ \mathbb{ \huge{ \pink{ \: \: FEATURES \: \: }}}}}$

$\bold{(1) \: \: It \: \: must \: \: be \: \: in \: \: writing \: .}$


$\bold{(2) \: \: The \: \: maker \: \: or \: \: the \: \: promisor \: \: must}$


$\bold{ \: \: \: \: \: \: sign \: \: the \: note \: .}$


$\bold{(3) \: \: The \: \: maker \: \: must \: \: be \: \: a \: \: definite \: \: person \: . \: }$


$\bold{(4) \: \: It \: \: must \: \: be \: \: properly \: \: stamped \: .}$


$\bold{(5) \: \: The \: \: payee \: \: must \: \: be \: \: a \: \: definite \: \: person \: .}$


$\bold{(6) \: \: The \: \: payment \: \: must \: \: be \: \: in\: \: legal \: \: tender \: .}$