Which of the following points are considered essential characteristics of a Promissory Note?

A. It must be in writing B. It must not contain an undertaking or promise to pay

C. The promise to pay must be conditional

D. A promissory note must be signed by the maker

E. Promise to pay money only

Choose the correct answer from the options given below:

Correct option is A

The essential characteristics of a promissory note are:
· A. It must be in writing – A promissory note must be written to be valid.
· D. It must be signed by the maker – The signature of the maker is necessary to make the note valid.
· E. Promise to pay money only – A promissory note must promise to pay money, not anything else.
· B is incorrect because a promissory note must contain a promise to pay.
· C is incorrect because the promise to pay must be unconditional, not conditional.
Information Booster
1. A promissory note is a written promise to pay a specified amount of money to the payee.
2. It must be unconditional and not dependent on any other conditions.
3. The signature of the maker is crucial for legal validity.
The promise must be to pay money only, not goods or services