Essential of Promissory Note



1. The promissory note must be in writing.
2. The promissory note must contain an undertaking to pay.
3. The promise to pay must be unconditional one.
4. It must be signed by the maker.
5. The maker must be a certain person.
6. The undertaking must be to pay a certain and definite sum of money only.
7. It must be payable on demand or at a fixed or determinable future time.
8. It should only payable on demand or at a fixed or determinable future time.
9. The payment must be in a legal money of the country and not in the form of food, grain or animal.
10. Revenue stamps or requisite value under the stamp Act of the country should be affixed.
11. Other matters of form like number, date, place etc, are usually found given in notes, but they are not essentials in law.

Reading: Read about Joint Stock Companies
12. A bank note or a currency note is not a promissory note within the meaning of this section.
13. A promissory note cannot be made payable to bearer on demand.



No comments:

We value your words. Don't spam here.

Powered by Blogger.