Suppose A buys from B $1,000 worth of merchandise. If he is not able to pay in cash, or does not wish to do so, he may give B his promissory note. This is but a promise to pay B either on demand or at some fixed or determinable future time. Or he may himself have a promissory note issued by C. He may indorse this and give it to B and pay for his own debt in this way. The seller is not compelled to accept a promissory note. The business reputation of the buyer is of much importance to a man in deciding whether he will accept a promissory note from him or not, just as it is to a bank when the man wishes to get money from it. The written promise is better than a verbal one because it is easier to prove in court. The advantage of promissory notes to a business man is that he can use them to pay his own debts or to get money from a note broker or at a bank. It also sets a specific date for payment; and dishonor of a note is more feared by the business man than mere slowness in payment of an open account.

Specimen Form Of Note $...........................

When due Number

Montana......................, 192....

....................................................after date, for value received, we jointly and severally promise to pay to the order of..............................................................

....................................................... Dollars with interest thereon at..........per cent per month from date until paid, and with reasonable attorney's fees in addition to other court costs in case an action is instituted to enforce payment. Each of the makers hereof, and the indorsers hereon, waive demand, protest and notice of non-payment.

Payable at office of ...................P. O...........

The First National Bank...................P. O...........

Montana. ...................P. O...........