Define promissory Note and Point out its Features.

1.	Define promissory Note and Point out its Features.
Answer» According to the Negotiable Instruments Act 1881, a promissory note is “an instrument in writing 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 of the instrument.” The following are the features of promissory note 1. It must be in writing 2. It must contain an unconditional promise to pay. 3. It must be signed by the maker 4. The person to whom payment is to be made must also be certain. 5. The amount payable must be certain. 6. It should be properly stamped.

Answer»

According to the Negotiable Instruments Act 1881, a promissory note is “an instrument in writing 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 of the instrument.”

The following are the features of promissory note

1. It must be in writing

2. It must contain an unconditional promise to pay.

3. It must be signed by the maker

4. The person to whom payment is to be made must also be certain.

5. The amount payable must be certain.

6. It should be properly stamped.

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