Promissory Note - Definition - Law Dictionary Home Dictionary Definition promissory-note

Definition :

Promissory Note, defined in the Bills of Exchange Act, 1882, s. 83, as 'an unconditional promise in writing, made by one person to another, signed, by the maker, engaging to pay on demand, or at a fixed or determinable future time, a sum certain in money to or to the order of a specified person or to bearer.' The note can require payment at a particular place, Josolyne v. Roberts, (1908) 2 KB 349. The person who makes the note is called the 'maker,' and the person to whom it is payable is called the 'payee': when it is negotiated by the indorsement of the payee, he is called the 'indorser,' and the person to whom the note is transferred is called the 'indorsee,' The Bills of Exchange Act, 1882, codifies the law relating to promissory notes, and by s. 89 of that Act all the provisions of the Act (with few exceptions) which relate to bills of exchange relate also to promissory notes. See BILL OF EXCHANGE.

Means a promissory note as defined by the Negotiable Instrument Act, 1881. [Indian Stamp Act, 1899 (2 of 1899), s. 2 (22)]

Means any instrument whereby the maker engages absolutely to pay a specified sum of money to another at a time therein limited, or on demand, or at sight. [Limitation Act, 1963, s. 2 (k)]