Concept of promissory note
my country’s “Bills of Exchange Law” defines promissory note as: a promissory note is a note issued by the drawer, promising to pay a certain amount to the payee or holder unconditionally upon sight.
The UK “Bills of Exchange Act” defines promissory note as: a promissory note is an unconditional written promise issued by one person to another to pay a certain amount to a person, his designated person or holder immediately or at a certain future time.
Characteristics of promissory note
As a freely tradable and transferable security, promissory note has its own characteristics, which are specifically manifested in the following aspects.
(1) A promissory note is an unconditional promise. The drawer of a promissory note bears the absolute payment responsibility after completing the issuance of the note
(2) The drawer of a promissory note is the payee and the principal debtor of the promissory note.
(3) There is no acceptance of a promissory note. Since the drawer of the promissory note is already responsible for guaranteeing payment, there is no acceptance of a promissory note.
(4) A promissory note is usually issued in a single copy.