Promissory Note Meaning – According to Section 4 of the Indian Negotiable Instruments Act, 1881, “A promissory note is an instrument in writing (not being a bank note or currency note) containing an unconditional undertaking, signed by the maker, to pay a certain sum of money to, or to the order of a certain peson.”
Characteristics of Promissory Note Meaning
1. A promissory note is unconditional
2. It is always in writing; a verbal promise to pay a specified sum of money is not a promissory note.
3. It is made and signed by the debtor.
4. It is made as payable to a specified person or to the order of the specified person or to the bearer, after the expiry of a specified duration.
5. A promissory note should be payable in the currency of the country
6. Promissory note drawn for a specified duration should be adequately stamped according to its value.
7. A bank note or currency note is not a promissory note.
8. Promissory note should be drawn for the payment of a specified sum. However, the acknowledgment of a debt such as an I.O.U is not a promissory note.
9. The consideration for and the date and place of making the promissory note need not be mentioned in the promissory note.
Must Read – Nature of learning
Must Read – Stress Management
If you want to share it, you can share it on Facebook, WhatsApp. Friends, we will keep 100% of the selection information every day. And will continue to provide notes of various job related examinations.
Disclaimer – Friends, https://www.pdffiles.in is designed for education and education sector only and does not have own Books / Notes / PDF / and ALL Material. We only provide Link and Material already available on the Internet. If in any way it violates the law or there is a problem, please mail us – [email protected] If you need more pdf files, notes or book, then you can email us. Email has been given up. We will be able to help you as soon as possible.