Section 4 - "Promissory note" - Negotiable Instruments Act, 1881

Chapter II Of Notes, bills and cheques "Promissory note". 4 . A "promissory note" is an instrument in writing (not being a bank-note or a currency-note) containing an unconditional under taking, 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. Illustrations A signs instruments in the following terms:— ( a ) "I promise to pay B or order Rs. 500." ( b ) "I acknowledge myself to be indebted to B in Rs. 1,000, to be paid on demand, for value received." ( c ) "Mr. B, I.O.U. Rs. 1,000." ( d ) "I promise to pay B Rs. 500 and all other sums which shall be due to him." ( e ) "I promise to pay B Rs. 500 first deducting thereout any money which he may owe me." ( f ) "I promise to pay B Rs. 500 seven days after my mar riage with C." ( g ) "I promise to pay B Rs. 500 on D's death, provided D leaves me enough to pay that sum." ( h ) "I promise to pay B Rs. 500 and to deliver to him my black horse on 1st January next." The instruments respectively marked ( a ) and ( b ) are promissory notes. The instruments respectively marked ( c ), ( d ), ( e ), ( f ), ( g ) and ( h ) are not promissory notes.