Promissory Note is an instrument in writing, containing an unconditional undertaking, signed by the maker, to pay a certain sum of money, to or to the order of a certain person or to the bearer of the instrument.
It needs to be noted that the matters of form like no., place date etc are usually given in promissory notes but they are not essential in law.
There are two types of PNs:
- Demand Promissory Note (which is payable immediately on demand).
- Usance promissory Note (payable after a predecided definite period).