A promissory note is a promise made in writing by one party, called the maker, to pay a sum of money on demand or at a fixed or determinable future time, to another party, called the payee, or to his order. Promissory notes and bills of exchange are written contracts. Consideration is always held to exist in the case of bills and promissory notes until it is positively shown that it does not. The accompanying simple form of promissory note signed by

Simple Form Of Promissory Note

Minneapolis, Minn., July 3, 1922.

Two months after date I promise to pay to the order of John Wagner five hundred dollars, with interest at 6%.

Philip Smith

Philip Smith might read: "On demand after date" and "to John Wagner or order," and the provision for interest might be omitted. In the accompanying form of note, Philip Smith is the "maker" and John Wagner is the "payee." A promissory note must contain an unconditional promise to pay a definite sum in money. Usually the words "I promise to pay" are used, but they are not necessary. Any words which mean the same thing may be used. For instance, the words "good to bearer" just as clearly show a promise to pay. But mere admissions of debt are not sufficient. Thus, such phrases as "I owe X"; "due X"; "I. O. U.," etc., merely admit that a debt exists and are not promises to pay the debt. Like bills, promissory notes are either "demand" or "time." They may be issued by firms, corporations, and governments and institutions, as well as by private individuals. Bank notes, United States notes, and bank certificates of deposit are forms of promissory notes.

Specimen Form Of Promissory Note

Statetown,......................, 192....... No............

......................... after date............promise to pay Due.........

to the order of................................................ $.............

........................................................ Dollars ..............

at the Institute National Bank of Statetown..............

59-16.

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