Explanation of Promissory Note

A promissory note is a legal instrument in which one party the maker or issuer promises in writing to pay a determinate sum of money to the other the payee, either at a fixed or determinable future time or on demand of the payee, under specific terms.

Promissory Note

Promissory Note: Learning Objectives: Define and explain promissory note. Definition and Explanation: There is another method of payment similar to bill of exchange i.e., promissory note. In this method, in place of the seller drawing a bill of exchange on the purchaser, the purchaser