Question

Which of these statements is true about a Promisory note?

• A. A Promissory note cannot be made payable to the bearer
• B. A Promissory note is a conditional order to pay
• C. A Promissory note does not require stamping
• D. A Promissory note cannot be dishonoured

Answer 1

Answer: (A)

A Promissory note cannot be made payable to the bearer

Some key features of promissory notes are as follows,

• It must be in writing
• It must contain an unconditional promise to pay.
• The sum payable must be certain.
• The promissory notes must be signed by the maker.
• It must be payable to a certain person,cannot be made payable to the bearer.
• It should be properly stamped.