promissory note

Related Terms
Written, signed, unconditional, and unsecured promise by one party (the maker or promisor) to another (the payee or promisee) that commits the maker to pay a specified sum on demand, or on a fixed or a determinable date. Promissory notes (such as bank or currency notes) are negotiable instruments.

Use 'promissory note' in a Sentence

One friend gave to another friend a promissory note that he would pay for the barbecue grill he broke as soon as possible.
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When you are making a big business acquisition it can be easier to use a promissory note than to pay in so much cash.
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The United States dollar is a promissory note, because it is a guarantee that there is gold in the treasury to cover it.
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