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Oh you Oh promissory notes and bill of exchange so first we are discussing the promissory notes before we understand what promissory note is let us try to understand this business transaction collegiate sing sells guru Suresh Kumar Suresh Kumar makes a promise in writing to pay the money when demanded by couldja Singh so here is a contract of sale and purchase between Kol Jeet Singh and Suresh Kumar whereby suresh kumar is purchasing the goods and he makes a promise in writing to pay the money when demanded by Kool G Singh the seller this type of promise is called a promissory note so in a promissory note we find that a promise is being made so here is this promise I promise to pay two months after date to mr. Khalid sing or his order a sum of rupees 10,000 for value received so it is signed by Suresh Kumar and it is addressed to Col GC and it is dated also amount is written in figures also amount is written in words also in addition stamp duty is also paid on this not in this situation Cool J Singh is creditor he will be called promising Suresh Kumar is a debtor he is called a promise her so the person who is to get the payment is promising the person who is to make the payment is a promisor another example z obtain the loan of rupees 10,000 from a bank that makes a promise in writing to the bank to return the money at the end of three months so this promise by Z is also a promissory note here Z is promisor the data the person who is to make the payment and bank is the promisee the person who is to get the payment promissory notes are negotiable instruments that means promissory note can be transferred from one person to another person so the right to get the payment can be transferred by one person to another person in case of a promissory note parties in the promissory note there are two parties in the promissory note one is called promisor the person who undertakes to make the payment the person who makes the promise another is promisee the person who is to receive the payment as per that promise types of promissory notes promissory notes are our two types if money's paper on demand made by the promisor then it is called demand promissory note a payment is to be made by the promisor on demand made by promisee it is called demand promissory note if the money is to be paid by the promisor after fixed a time period it is called users promissory note next instrument that is called bill of exchange what is the bill of exchange so again let us go back to our example Suresh purchasing goods from ecology sing or purchasing has sold goods to Suresh Kumar Kuja singh signs a return order to suresh.