Question

Which of these is/ are essential for a valid promissory note?

• A. Writing
• B. Proper stamping
• C. Amount to be paid must be certain
• D. All the three

Answer 1

Answer: (D)

All the three

According to Negotiable Instruments Act, 1881, a promissory note is defined as an instrument in writing, 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. The following are the features of a promissory note :

(1) It must be in writing.

(2) It must contain an unconditional promise to pay.

(3) The sum payable must be certain.

(4) It must be signed by the maker.

(5) The maker must sign it.

(6) It must be payable to a certain person.

(7) It should be properly stamped.