Explanation:

Section 4 of the Negotiable Instruments Act,1881. A Promissory Note is a legal financial instrument issued by one party, promising to pay the debt owed to another party Definition – “A Promissory note is an instrument in writing containing an unconditional undertaking, signed by the maker, to pay a certain sum of money only to, or to the order of, a certain person, or to the bearer of the instrument”.