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Section 4 — Promissory Note Definition
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Promissory Note Definition
Negotiable Instruments Act
Chapter II: Of Notes, Bills and Cheques
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Reviewed by Adv. Shailendra Babbar, Seasoned Advocate · Practicing since 31 years🗣️ Simple Explanation
A promissory note is a written promise to pay someone a specific amount of money. It's like saying, 'I owe you this much, and I will pay you back.' It must be signed and unconditional.
💡 Real Life Example
A borrows ₹10,000 from B and signs a promissory note saying, 'I, A, promise to pay B or order ₹10,000.'
🛡️ KNOW YOUR RIGHTS
- •You have the right to receive a written promissory note if you lend money.
- •The note must clearly state the amount and the promise to pay.
Sources & References
📒 Legal text sourced from The Gazette of India & AdvocateKhoj Bare Acts Library
⚖️ Content reviewed by Adv. Shailendra Babbar, Seasoned Advocate, with 31 years of legal practice
📚 Act Reference: Negotiable Instruments Act
Disclaimer: This content is for informational purposes only and does not constitute legal advice. Consult a qualified advocate for specific legal matters.
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