One can easily consider the promissory note as a financial instrument or a financial document which serves as an agreement between at least two parties. The promissory note acts a negotiable tool which holds the terms and the conditions of the agreement. The promissory note is written evidence that the certain party is in debt of a particular amount and will liable to pay it on the preset date. However one can always ask for more time. The promissory note is considered to be legal binding document which has legal accessions. One of the main purposes of the promissory note is to lend the other party have some time, so that they can easily come up with the money which they owed.
A promissory note is a document that is used by one part which details that certain other party will pay a particular amount of money in the future or when asked upon by following the preset terms and the conditions. A promissory note tells us about the rights of the payee in the situation of default, maturity date, terms of payment, parties to the note, interest rate as well as the principal amount. A promissory note is one of the most important commercial documents that should be drafted with utmost care and professionalism. In order to make the promissory note effective, both parties must sign the document.