Essentials of promissory note
- Agreement on paper or writing: It should be properly written or printed. Any promise the person makes over the phone is not valid as a written note.
- Conditions-Free Promise: The person who draws must make a promise to the person who draws without any conditions being set in the pronote. If the drawee agrees to pay the payee the money, that can be written into the promissory note.
- Files That Have Been Signed: The person who is drawing the paper must sign it. This is because the responsibility lies with the drawer, not the drawee. The drawee does not have to sign it.
- Exact Names: All parties must have their exact names written down.
- Interest: If there is an interest rate on the money, it should be written in the pronote.
- Date of issue: Both the date of issue and the date the note will age must be written in the pronote.
- Stamped: the paper needs to be stamped. One rupee revenue stamp or the note should be on the stamp paper.
- Pay Set Amount: The person who draws the note should pay the full amount written on it. The written amount can’t be taken away or added to.
- Legal Form: The legal cash should be used to pay for the thing.
- Detailed information: Information in Great Detail—Every piece of information should be very clear.
| Promissory Notes cases that have been solved
Find the word(s) that are missing from the following lines.
(1) Makers, __________, and __________ are all parties to promissory notes. (2) A n undertaking to pay money on a specific furture date is an __________promise. (3) A promise note must always be in __________ and not oral.
Answer: (1) payees and holders (2) Unconditional (3) writing |