Promissory Note [Last Updated by: admin on 2012-01-01]
An unconditional promise in writing made by the buyer to the seller, signed by the buyer, agreeing to pay on demand, or at a fixed or determinable future date, a certain sum of money to, or to the order of, a specified person or to the bearer. The essential difference between it and a Bill of Exchange is that a Promissory Note is written by the buyer and sent to the seller who is owed payment, i.e. it is an IOU. Both instruments settle indebtedness in International Trade. (It is legally enforceable).