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Promissory Notes
Promissory Notes
MAGBANUA
ELEAZAR FIDEL
NEGOTIABLE INSTRUMENT
It is a written contract for REQUISITES:
the payment of money a. It must be in writing and
signed by the maker or
which complies with the
drawer;
requirements of Section 1 of b. Contain an unconditional
the NIL, which by its form promise to pay a sum
and on its face is intended certain in money
as a substitute for money c. Payable on demand or at
and passes from hand to fixed or determinable
hand as money so as to future
d. Payable to order or bearer;
give the holder in due
e. When addressed to a
course the right to hold the drawee, he must be
instrument free from named or otherwise
personal defenses available indicated there in with
to prior parties reasonable certainty.
PROMISSORY NOTE
An unconditional promise in writing made by one person
to another, signed by the maker, engaging to pay on
demand, or at fixed or determinable future time, a sum
certain in money to order to bearer.
A solemn acknowledgment of a debt and a formal
commitment to repay it on the date and under the
conditions agreed upon by the borrower and the lender.
A person who signs such an instrument is bound to honor it
as a legitimate obligation duly assumed by him through
the signature he affixes thereto as a token of his good
faith. If he reneges on his promise without cause, he
forfeits the sympathy and assistance of this Court and
deserves instead its sharp repudiation. (Sierra v CA, GR
No. 90270, July 24, 1992)
SIMPLE FORM
PROMISSORY NOTE
P20,000.00
FOR VALUE RECEIVED, I promise to pay without need
of demand to the order of __Payee__, at his office at
Azure Building, Makati, the principal amount of
PESOS: Twenty Thousand (P20,000.00), on or before
December 31, 2018.
October 21, 2019, Quezon City, Philippines.
PAPA JACK
SIMPLE FORM W/ INTEREST
PROMISSORY NOTE
P50,000.00
FOR VALUE RECEIVED, I promise to pay without need of demand to the
order of __Payee__, at his office at Gil Puyat Ave., the principal amount of
PESOS: Fifty Thousand Pesos (P50,000.00), on or before December 25,
2018. In addition to the foregoing, I promise to pay monthly interest at the
rate of Two percent (2%) percent, without need of demand, starting from
the month of October until this note is fully paid.
WHO
• Passive subject against whom the holder
can enforce the right represented by
the instrument
TO FILE
• Secondarily liable for the promissory
note
• Promises to pay if the person primarily
refuses or fails to pay
• Steps in order to charge the Indorser