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Section 4 of the Negotiable Instruments Act defines promissory notes. The definition says promissory notes are basically instruments in writing. They are, however, neither bank notes nor currency notes which also contain this feature.

A Promissory Note will only be enforceable if it includes all the elements which are necessary to make it a legal document.Names of All Involved Parties -the Promissory Note must include the legal names of all the parties who are a part of the transaction.

A promissory note is only valid, if it involves the exchange of money. The loan amount should be expressed in a legally recognized currency.If, for example, the note contains conditions for a certain amount to be paid every month, then the lender can enforce collection, if the due date on a given month has passed.

A promissory note is valid only if it is a promise to pay money. A promise to give property (or both property and money) is not a promissory note. Payable on Demand or on Specific Date . Many differences among promissory notes relate to when and how the borrowed amount will be repaid.

Although it's a legal document, writing a promissory note doesn't have to be difficult. There are even websites online that offer fill-in-the-blank templates, like or .

Even if you have the original note, it may be void if it was not written correctly. If the person you're trying to collect from didn't sign it and yes, this happens the note is void. It may also become void if it failed some other law, for example, if it was charging an illegally high rate of interest.

In order for a promissory note to be valid and legally binding, it needs to include specific information. "A promissory note should include details including the amount loaned, the repayment schedule and whether it is secured or unsecured," says Wheeler.