A promissory note is a financial instrument that contains a written promise by one party (the note's issuer or maker) to pay another party (the note's payee) a definite sum of money, either on demand or at a specified future date.

What is promissory note example?

A simple promissory note might be for a lump sum repayment on a certain date. For example, you lend your friend $1,000 and he agrees to repay you by December 1. ... A demand promissory note is one in which payment is due when the lender asks for the money back. Usually, a reasonable amount of notice is required.

What is promissory note under Indian law?

A promissory note in India sometimes alluded to as a note payable, is a legal instrument, in which one party (the issuer) guarantees or promises in writing to pay a determinate amount of cash to the other (the payee), either at a fixed or definable future time or on demand of the payee, under particular terms.