Promissory note

Updated: Aug 20, 2021

Defined by the Bill of Exchange Act 1882 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 must be delivered to the payee or bearer. The person signing the note must pay it to a holder in due course; he has no right to deny the existence of the payee or the capacity of the payee to endorse. Notes payable on demand should be presented within a reasonable time – how long that is depends on the custom of the particular trade.

Reference: The Penguin Business Dictionary, 3rd edt.

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James Knight
Editor of Education
James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.