Promissory Note:
Learning Objectives:
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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 himself
makes a written promise to pay the amount to the seller. It is defined as an
instrument in writing containing an unconditional promise, signed by the
maker to pay on demand or at a fixed or determinable future time, a certain
sum of money only to or to the order of a certain person or to the bearer of
the instrument.
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