Quick Definition

A promissory note is a financial document in which one party promises in writing to pay a determinate sum of money to the other, either at a fixed or determinable future time or on demand of the payee, under specific terms.

Examples

• 1A student signing a promissory note for a student loan.
• 2A business owner issuing a promissory note to a supplier for goods received on credit.
• 3A real estate developer giving a promissory note to a lender as part of a construction loan agreement.
• 4An individual borrowing money from a family member and issuing a promissory note outlining repayment terms.

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