What is Promissory Note and parties thereto? What are essentials of a Promissory Note? Draft a specimen promissory note.

Promissory note Promissory note is one of the negotiable instruments recognized under the Negotiable Instruments Act, 1881. A "promissory note" is defined under Section 4 of the Negotiable Instruments Act, 1881 as "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". Parties to the Promissory note Maker Payee Holder Essentials of a Promissory Note To be a promissory note, an instrument must possess the following essentials: It must be in writing. An oral promise to pay will not do. It must contain an express promise or clear undertaking to pay. The promise or undertaking to pay must be unconditional. A promise to pay "when able", or "as soon as possible", or "after your marriage to D" is conditional. The maker must sign the promissory note in token of an undertaking to pay to the payee or his order. The maker must be a certain person, i.e., the note must show clearly who is the person engaging himself to pay. Promissory Note Payable on Demand On Demand we, 'A.B.', aged about ............ years, son of Shri ............ Resident of ............ AND 'C.D.', aged about ............ Years, son of Shri ............ Resident of ............ jointly and severally promise to pay to 'E.F.', aged about ............ years, son of Shri ............ resident of ............ or order the sum of Rupees ............ (₹...........) only, with interest at the rate of ............% per annum until repayment for value received. DATED AND DELIVERED at ............ this the ............ day of ............ 2020. Sd. 'A.B.' Sd. 'C.D.'