4. Promissory note
.- A promissory note is 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.
illustrations
A signs instruments in the following terms:
(a) I promise to pay B or order Rs. 500.
(b) I acknowledge myself to be indebted to B in Rs. 1, 000,
to be paid on demand, for value received.
(c) Mr. B, IOU Rs. 1,000.
(d) I promise to pay B Rs. 500 and all other sums which shall
be due to him.
(e) I promise to pay B Rs. 500 first deducting thereout any
money which he may owe me.
(f) I promise to pay B Rs. 500 seven days after my marriage
with C.
(g) I promise to pay B Rs. 500 on D’s death, provided
D leaves me enough to pay that sum.
(h) I promise to pay B Rs. 500 and to deliver to him my black
horse on 1st January next.
The instruments respectively marked (a) and(b) are promissory
notes. The instruments respectively marked (c), (d), (e),
(f), (g) and (h) are not promissory notes.
|
