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A promissory note is a documented promise to repay borrowed money. Promissory notes are binding legal documents used to protect both the lender and the borrower. The promissory note is paper evidence of the debt that the borrower has incurred.

Features of Promissory Note Printed/Written Agreement ? A promissory should be in writing, and an oral promise to pay money is not accepted. Pay Defined Amount ? It is a promise to pay the money on a particular time or when demanded. The mentioned amount can neither be added or subtracted.

Necessities of a promissory note The document must contain an unconditional undertaking to pay. The undertaking must be to pay money only. The money to be paid must be certain. It must be payable to or to the order of someone in particular or to the bearer.

A promissory note is a written and signed promise to repay a sum of money in exchange for a loan or other financing. A promissory note typically contains all the terms involved, such as the principal debt amount, interest rate, maturity date, payment schedule, the date and place of issuance, and the issuer's signature.

Characteristics of promissory note: It should be drawn and signed by the maker. It should be stamped properly. It specifically identifies the name of the maker and payee. The amount that is to be paid should be certain, written in both figures and words.

A) A promissory note generally involves two parties, i.e. a maker (debtor) and a payer (creditor). On the other hand, bills of exchange include a drawer, a drawee and a payee. b) As the bills of exchange introduction above shows, a bill orders the drawee to pay as per the drawer's directions.

A promissory note is a written agreement between a borrower and a lender saying that the borrower will pay back the amount borrowed plus interest. The promissory note is issued by the lender and is signed by the borrower (but not the lender).