Promissory Note: Meaning and Explanation

Promissory Note:

-Section 4 of India's Negotiable Instruments Act, 1881

The feature of the Promissory Note: -

1. It is in writing.
2. An unconditional promise to pay a certain sum of an amount.
3. An amount should be described in it.
4. It must be signed by the maker or issuer.
5. The document must be dated and properly stamped.
6. The amount must be payable to either a certain person or on his/her behalf.
7. It clearly mentions the date of payment.

The Parties Involved in the PO:-

1. Maker
2. Payee

1. Drawer: - 

2. Payee: -

Contents of Promissory Note: -

1. Title of note : -

2. Date of drawn: -

3. Amount to be paid: -

4. Date of payment or Term: -

5. Unique Identification Number: -

6. Name of Maker(issuer or Borrower): -

7. Signature of Maker(issuer or Borrower): -

The format of Promissory Note: -