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PROMISSORY definition: 1. relating to, containing, or similar to a promise: 2. relating to, containing, or similar to a…. Learn more.
Oct 5, 2022 · Corporate Promissory Note. When a business is officially incorporated, it is legally allowed to take out loans without personal liability to the people running the company. This means that on the promissory note, the company’s name would appear as the “borrower,” and an authorized person from the company would sign the note on its behalf.
The definition says promissory notes are basically instruments in writing. They are, however, neither bank notes nor currency notes which also contain this feature. The next important aspect of promissory notes meaning is that they are unconditional undertakings. The maker of these notes agrees to pay a certain sum either to a particular person ...
Promissory note definition: a written promise to pay a specified sum of money to a designated person, or to the bearer of the note, at a fixed time or on demand.. See examples of PROMISSORY NOTE used in a sentence.
PROMISSORY NOTE Definition & Legal Meaning. Definition & Citations: A written promise to pay a debt by a specific date. It can be turned to cash by transferring it to ...
A promissory note is a documented promise to repay borrowed money. Promissory notes are binding legal documents used to protect both the lender and the borrower. The promissory note is paper evidence of the debt that the borrower has incurred. It outlines the amount of the loan, the interest rate to be paid, and either the date when it needs to ...
The essential elements of a promissory note are: It must be an instrument in writing — not being a bank note or a currency note. The instrument must contain an unconditional undertaking to pay. The instrument must be signed by the maker. The undertaking to pay must be to pay a certain sum of money only. The payment is to be made to the person ...
