Which of the following is a valid promissory note?I owe A Rs 500I promise to pay Rs 1,000 ten days after the death of BI promise to pay the bearer Rs 1,000I promise to pay Rs 1,000 after the marriage of B. (2024)

FAQs

What is a valid promissory note? ›

A promissory note is valid only if it is a promise to pay money. It must be unconditional - The borrower's payment cannot depend on an event or any other possibility. It must be unconditional. There should be a specific Amount - The note must indicate a specific amount owed that will be paid.

A "Promissory note" is an instrument in writing (not being a bank-note or a currency-note) containing an unconditional undertaking, signed by the maker, to pay a certain sum of money only to, or to the order of, a certain person, or to the bearer of the instrument.

Contrary to a Promissory Note, which is an unconditional promise to repay money, a Forgivable Loan Agreement, or FLA, states that a specified portion of the new employee's loan balance will be “forgiven.” Presented at the time of recruitment, the FLA differs from a Promissory Note in that a certain percentage of the ...

Answer and Explanation: The correct option is c: The incorrect statement is a promissory note is not a negotiable instrument. A promissory note is a promise made by the maker of the note to pay to the payee on a specific date or when demanded by the payee.

A promissory note is a written agreement between one party (you, the borrower) to pay back the loan issued by another party (often a bank or other financial institution). Anyone lending money (like home sellers, credit unions, mortgage lenders and banks, for instance) can issue a promissory note.

Promissory note or ProNote is a legal document by which a monetary liability is created on the promisor in favour of a promisee. Promissory notes are mostly used by businessmen while lending unsecured loans.

Promissory note. a written and signed promise to pay a sum of money at a specified time.

A promissory note could become invalid if: It isn't signed by both parties. The note violates laws. One party tries to change the terms of the agreement without notifying the other party.

Common types include promissory notes for mortgage loans, federal student loans (also known as a master promissory note), auto loans, and personal loans between friends or family, among other potential uses. It's important to note that bills of exchange and promissory notes are not the same.

The debt owed on a promissory note either can be paid off, or the noteholder can forgive the debt even if it has not been fully paid. In either case, a release of promissory note needs to be signed by the noteholder.

What type of loans are forgivable? ›

Public Service Loan Forgiveness (PSLF)

If you work full time for a government or nonprofit organization, you may qualify for forgiveness of the entire remaining balance of your Direct Loans after you've made 120 qualifying payments—i.e., 10 years of payments.

A form of debt instrument, a promissory note represents a written promise on the part of the issuer to pay back another party. A promissory note will include the agreed-upon terms between the two parties, such as the maturity date, principal, interest, and issuer's signature.

In the context of a promissory note, this is another word for “promisee”. Consideration – This is a legal term for the value received in return for entering into a contract. For a contract to be valid there must ordinarily be “mutual consideration” – value received by both parties to the contract.

A basic promissory note may be for a single amount reimbursem*nt on a specific date. For instance, you loan your companion rupees 10,000 and he consents to reimburse you by December 10.

The note must be stamped by revenue stamps as per the rules of the Indian Stamp Act. Promissory notes are valid for three years only. There is no limit on the amount to be borrowed for a promissory note to be issued.

You can typically sign a legally binding promissory note that contains unconditional pledges to pay a certain sum of money. However, you can strengthen the legality of a valid promissory note by having it notarized. It never hurts to add a layer of protection as you may have to use it in court.

Writing a promissory note is simple when you have the right promissory note template and the right information to hand. But what exactly do you need to write a promissory note? Include their full legal names, addresses, and contact numbers—include any co-signers if applicable.