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Format of Promissory Note

Promissory Note

STAMP Mamta Samant,
13/A, Business Centre,

L. B. S. Road, Mulund,
Mumbai.

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` 20,000 Date : 10 January, 2019.

Three months after date I promise to pay Beena Sharma or her order a sum of Rupees Twenty
Thousand only, for the value received.

Sd/-
(Mamta Samant)

To,

Sunita Karve,
M. G. Road,

Surat.

Important trems of Bill of Exchange :
1. Term or Tenor or Tenure of bill : The term of bill is period of time after which a bill becomes
payable. Term of bill may be in months or days.
2. Draft : A bill before acceptance is known as draft.

3. Days of grace : Three extra days allowed by law over and above the term of bill to the Drawee
in order to make arrangement for payment of the amount of the bill is known as days of grace.
However, days of grace is not allowed for bill payable on ‘Demand’ or ‘At Sight’.

4. Date of maturity or Due date of bill : The date on which a bill falls due for payment is known
as date of maturity or due date.

If the due date falls on a public holiday the payment of bill is to be made on the preceding
working day. For example, if the due date of a bill is 26 January or 15 August which is a
th
th
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public holiday then the payment of the bill be made on the preceding day i.e. 25 January or
14 August.
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However, if the due date for some reason has been declared as emergency holiday the payment
of bill must be made on the immediate or next working day.

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