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Ramesh   13 June 2017

Promissory note in ms word

1. Promissory note is valid only if it in "printed form" available in shop for 5rs?


2.  Can I prepare a promissory note in MS word, with the following content is valid?  
wordings are correct?

                                             PROMISORY NOTE
                                            ----------------------

ON DEMAND, I, ______________________, son of _____________________, aged about ____ years, residing in _____________________________________________________
do hereby PROMISE TO PAY ________________, son of __________________, aged about _____  years, residing in ______________________________________________________
the sum of Rs.__________  in words ______________________________________________
along with interest of _____ % per annum in the bank account of  ______________________.

Date:  _________
Place: _________                                                             Signature in Revenue stamp

witness:


3.  the following points are missing in the above pronote, is that ok?

a) on a particular date, the borrower received cash of Rs. 1,00,000 as Loan from Lender
          --- missing is ok?
b) reason for borrowing - family expenses, son's education, wife's hospital expense
          --- missing is ok?

4.  On demand by who?
      How to include -   On demand by lender or relatives of lender



Learning

 4 Replies


(Guest)
Absolutely not valid as per Negotiate Instruments Act 1881
1 Like

Advocate Suneel Moudgil (Advocate)     13 June 2017

Its VALID

Promissory notes

Section 4 of the Act defines, “A promissory note is an instrument in writing (note being a bank-note or a currency note) containing an unconditional undertaking, signed by the maker, to pay a certain sum of money to or to the order of a certain person, or to the bearer of the instruments.”

Essential elements

An instrument to be a promissory note must possess the following elements:

1. It must be in writing: A mere verbal promise to pay is not a promissory note. The method of writing (either in ink or pencil or printing, etc.) is unimportant, but it must be in any form that cannot be altered easily.

2. It must certainly an express promise or clear understanding to pay: There must be an express undertaking to pay. A mere acknowledgment is not enough. 

Azhagananth (Lawyer)     14 June 2017

1. even a hand written document may be said as Promissory when it contains the following

(i) It must be in writing, (ii) The promise to pay must be unconditional,(iii) The amount promised must be a certain and a definite sum of money,(iv) The instrument must be signed by the maker: It is incomplete till it is so signed.(v) The person to whom the promise is made must be a definite person, (vi) must be stamped, (Vii) amount must be specified  - In connection with the promissory note, you should also remember that: (a) consideration need not be mentioned; (b) place and date of making it need not the mentioned: (c) an undated instrument will be treated as having been made on the date of its delivery; and (d) an antedated or post dated instru­ment is not invalid.

2. Yes can prepare by MS, PSD also. But signature should be signed in hand only. means no digital signature.

3. Sample of Promissory note is available in this site itself. check for it easy reference.

Azhagananth (Lawyer)     14 June 2017



Expert : Shailesh Kr. Shah

Posted 5 years ago



PROMISSORY NOTE UNDER SEC.4, NEGOTIABLE INSTRUMENTS ACT,
1881 IN WHICH NO INTEREST IS CONTEMPLAIED AND NO TIME FOR
PAYMENT IS MENTIONED
I, Sri._____________________ S/o. _________________________
promise to pay Sri.___________________ S/o.________________
_____________ or order, the sum of Rs.______ (Rupees______________only)
Place:
Date: Signature.






PROMISSORY NOTE PROVIDING FOR INTEREST
I, Sri.______________________ S/o._____________________promise to
pay Sri.______________________ S/o._____________________ or order, on
demand, the sum of Rs.______ (Rupees___________________only) with interest
at the rate of ________ per cent. per mensem / annum from the date of these
presents, for value received.
Place:
Date: Signature.


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