KINDS OF PRONOTES (PROMISSORY NOTES)
The promissory note may be of the following kinds:
1. Kinds by Time: Under this category, the pronote can be further subdivided:
1. Sight Promissory Note:
This is the note which becomes payable on sight
2. Usance or Time Promissory Note: This type of promissory note is made for a definite period of time after the expiry of which it become payable.
2. Kinds of Liability: Again it can be further subdivided into:
1. Single Promissory Note:
Where the promissory (maker) is only one person and makes only himself liable to pay off the sum, such a note is known as single promissory note.
2. Joint Promissory Note:
Where there are two or more promissors or makers of the note, such a written promise is known as a joint promissory note. In it two or more persons are jointly or individually liable to pay off the borrowed sum.
PARTIES TO A PROMISSORY NOTE Next Post:
DIFFERENCES BETWEEN THE PROMISSORY NOTE AND THE CHEQUE