PARTIES TO A PROMISSORY NOTE

Promissory Note :- Promissory note is a written promise to pay a debt. It is a financial instrument, in which one party (maker or issuer) promises in writing to pay a determinate sum of money to the other (the payee), either at a fixed, determinable future time or on demand of the payee subject to specific terms. A promissory note is an instrument of credit which posses the characteristics of negotiability.

Parties to a Promissory Note:

Primarily there are two parties involved in a promissory note.
They are

• The Maker or Drawer: The person who makes a – promissory note is called the “maker”.
• The Payee – Payee is the person to whom the amount is payable.

In course of transfer of a promissory note by payee and others, the parties involved may be Endorser and Endorsee.

• The Endorser – Endorser is the person who endorses the note in favour of another person.
• The Endorsee – Endorsee is the person in whose favour the note is negotiated by endorsement.

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