NEGOTIABLE INSTRUMENTS – Promissory Note Question and Answer

Question

Outline four requirements of a promissory note.

Answer

Requirements of a promissory note.

1. 1. It is an unconditional written promise made by a person to another
   2. It must be signed by the maker
   3. It contains a promise to pay a sum certain in money.
   4. The sum is payable on demand or at a fixed or determinable future time.
   5. The sum is payable to a specified person, his order or the bearer.