Promissory Note

Promissory Note:
As per section 4 of the Negotiable Instrument Act. 1881, 'A promissory note is an instrument in writing( not being a bank-note of currency-note) containing an unconditional undertaking 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.'

When promissory note is due, it is presented for payment by the payee or someone to whom the note has been endorsed and delivered.
It is a negotiable instrument.

Features of a promissory note:

i. Unconditional promise.
ii. Must be written by one person to another.
iii. Promise to pay on demand or  at a fixed or determinable future time.
iv. Promise to pay a sum of certain money to , or to the order, a specific person or the bearer.
v. Payable to the maker's order must be endorsed by the maker.