Promissory Note 


Meaning of Cheque –

      A cheque is an order to a bank to pay a stated sum from drawer's account, written on a specially printed form.

Meaning of Promissory Note –

             A promissory note is an unconditional promise in writing made 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 the order of a specified person, or to bearer.


Definition –

     According to Section 6 of Negotiable Instrument Act 1881, a cheque is a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand.

Definition –

     According to Section 4 of the Negotiable Instrument Act 1881 “Promissory Note” is an instrument in writing (not being a bank-note or a currency-note) containing an unconditional undertaking 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.


There are three parties namely –

1) Drawer,

2) Drawee and

3) Payee

In Promissory Note, there are two parties namely –

1) maker and 

2) Payee


It can be drawn only by the account holder of a bank.            

A promissory note can be made by any person.


In a cheque, an order for payment is given to the bank

In a promissory note, there is a promise to pay.


A cheque is payable always on demand.

It may be payable on demand or after a specified time


Grace time –

  Three days of grace are not given in a Cheque           

Grace time –

  Three days of grace are given in promissory notes payable after a specified time.


The drawer and payee may be the same person.

The maker and the payee/drawer may not be the same person.


No stamps required to be affixed.

In a promissory note, stamps are required to be Affixed.


Cheque can be crossed.               

Crossing of the promissory note is not required.

See also...

 Negotiation: Meaning, Definition and Modes of negotiation

Difference between Promissory Note and bill of exchange

Essentials of Valid Promissory Note


  1. This is very significant, and yet necessary towards just click this unique backlink: Paul Mankin

  2. When your website or blog goes live for the first time, it is exciting. That is until you realize no one but you and your. sketch.

  3. I wanted to thank you for this excellent read!! I definitely loved every little bit of it. I have you bookmarked your site to check out the new stuff you post. sketch.

  4. Hai very fantastic note. Where i can find a note for guitar? chord gitar

  5. That so fantastic. I really. love your blog post. golife

  6. Nice article, really appriciated. I love english Note and also i downloaded Notebook app

  7. I havent any word to appreciate this post.....Really i am impressed from this post....the person who create this post it was a great human..thanks for shared this with us. check this site

  8. The post is written in very a good manner and it contains many useful information for me. umrah packages

  9. kitaabnow is an online book store in pakistan with a huge variety of Academic Books and Stationery items. Visit the store today at

  10. Superbly written article, if only all bloggers offered the same content as you, the internet would be a far better place.. click here


See Also..