Write A Note On Promissory Notes?

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.