Anonymous

Write A Note On Promissory Notes?

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Anonymous Profile
Anonymous answered
Please allow me to take exam because I'm not fully paid I promise to pay my payable tuition fees at the cost of 2300.00 on the day of february 4,2010
Mahwash Marcel Profile
Mahwash Marcel answered
The bill of exchange Act 1882 defines promissory note as an unconditional promise in writing made by one person to another, signed by the maker, engaging to pay, on demand or at a fixed or determinable future time, a sum certain in money to or to the other of, a specified person, or to bearer. Once signed by the maker, it must be handed over to the payee.

A promissory note is an unconditional promise by the borrower to return the borrowed money on a specified date to the lender or his order. Following essentials make and keep the promissory note or promote valid:

1. It must be in writing.
2. It must be a promise.
3. The note is always unconditional.
4. Promise contains the return of the borrowed money.
5. It is payable on demand or on a specified period / date.
6. The maker must sign it.
7. The promise must bear a revenue stamp.
8. The maker must be a certain person.
9. Payee must be a certain person.

There are two kinds of promissory notes:

1. Single promissory note: where the promissory (maker) is only one person and makes only himself liable to pay off the sum, such as a note is known as single promissory note.

2. Joint promissory note: where there are two or more promissors or makers of the note, such a written promise is known as a joint promissory note. In it two or more persons are jointly or individually liable to pay off the borrowed sum.
Nouman Umar Profile
Nouman Umar answered
A promissory note ensures the guarantee for the payment. A promissory note is the simplest and earliest kind of credit instrument. It is an unconditional written promise by one person to another in which the maker promises to pay on demand or to the order of a specified person or to the bearer of the instrument. A promissory note in order to be negotiable must fulfill some conditions.

The promise to pay must be in written form. The promise to pay must be signed by the maker or payer. The promise to pay must be unconditional. An instrument containing a promise to pay q sum after deducting necessary expenses or imposing any other condition is not a promissory note. The amount to be paid must be definite in terms of money. The promissory note must be payable on demand or at a fixed or determinable future date.

The promissory note must be payable to a definite person. The payee must be certain the promissory not can not be made payable to the maker himself. It must bear stamp at the rate prescribed by law of country. There are two parties to a promissory note. The advantage of the promissory note is easy and simple method of borrowing and repaying a debt.

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