Business Environment and Law-The Negotiable Instruments Act, 1881

Essentials or Characteristics of a Promissory Note - Negotiable Instruments Act, 1881

Posted On : 08.05.2018 05:29 am

Essentials or Characteristics of a Promissory Note:

1. In writing.

2. Promise to pay.

3. Unconditional.

4. Signed by the Maker.

5. Certain Parties.

6. Certain sum of money.

7. Promise to pay money only.

8. Number, place, date etc.

9. It may be payable in installments

10. It may be payable on demand or after a definite period

11. It cannot be made payable to bearer on demand or even payable to bearer after a certain period (Sec. 31 of RBI Act).

12. It must be duly stamped under the Indian Stamp Act

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