Promissory note

Promissory note this legal term is used in the area of Law of Contracts, where details a specific loan contract that could be signed by any borrower of money. This contract contains an unconditional, written and signed promise to pay a certain amount of money, on demand or at a certain defined date in the future – usually to concrete person or to the bearer. For example the bank loan agreements consist of a promissory note. It is contrary to a bill of exchange, a promissory note is not drawn on any third party holding the payor’s money; it is a direct promise from the payor to the payee. Sometimes called also “note of hand”.

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