A promissory note is an unconditional promise made in writing by one person to another signed by the maker, engaging to pay on demand or at a fixed or determinable future time, a sum certain in money, to, or to the order of, a specified person or to bearer, as defined the Bills of Exchange CAP 262, Part IV Promissory Notes (the “Law”), s. 83 (1).
This is not a bill of exchange but shares most of the characteristics of the bill of exchange.
It shall be noted that the note is a promise to pay and it is not an order to pay, hence there is no drawee and thus no acceptor.
The note shall be indorsed and delivered to be within the meaning of the relevant provisions of the Law (s. 83(2), (6)).
Where the note payable on demand has been indorsed, it must be presented for payment within a reasonable time of the indorsement and if it is not so presented the indorser is discharged.
Presentment for payment of the promissory note is necessary to make the indorser liable.
The maker of the promissory note by making it-
(a) Engages that he will pay it according to its tenor;
(b) Is precluded from denying to a holder in due course the existence of the payee and his then capacity to indorse.
It shall be noted Part II of the Law applies to notes with the necessary modifications to promissory notes.