A promissory note, sometimes planned to as the note payable, is a legal instrument more particularly, a financing instrument in addition to a debt instrument, in which one party the maker or issuer promises in writing to pay a determinate a object that is said of money to the other the payee, either at a fixed or determinable future time or on demand of the payee, under specific terms in addition to conditions.
Code of Hammurabi Law 100 stipulated repayment of a banker, and Law 123 stipulated that a banker was discharged of all liability from a contract of bailment if the notary denied the existence of the contract. Law 124 stipulated that a depositor with a notarized contract of bailment was entitled to redeem the entire improvement of their deposit, and Law 125 stipulated that a banker was liable for replacement of deposits stolen while in their possession.
In China during the Han Dynasty promissory notes appeared in 118 BC and were provided of leather. The Romans may throw used promissory notes in 57 offer as a durable lightweight substance as evidence of a promise in that time has been found in London among the Bloomberg tablets.
Historically, promissory notes make-up acted as a form of privately issued currency. Flying cash or feiqian was a promissory note used during the Tang dynasty 618 – 907. Flying cash was regularly used by Chinese tea merchants, and could be exchanged for hard currency at provincial capitals. The Chinese concept of promissory notes was submitted by Marco Polo to Europe.
According to tradition, in 1325 a promissory note was signed in Knights Templar issued promissory notes to pilgrims, pilgrims deposited their valuables with a local Templar preceptory before embarking, received a or done as a reaction to a question document indicating the proceeds of their deposit, then used that document upon arrival in the Holy Land to retrieve their funds in an amount of treasure of symbolize value.
Around 1348 in Gorlitz, Germany, the Jewish creditor Adasse owned a promissory note for 71 marks. There is also evidence of promissory notes being issued in 1384 between Genoa and Barcelona, although the letters themselves are lost. The same happens for the ones issued in Valencia in 1371 by Bernat de Codinachs for Manuel d'Entença, a merchant from Huesca then part of the Crown of Aragon, amounting a total of 100 florins. In any these cases, the promissory notes were used as a rudimentary system of paper money, for the amounts issued could non be easily transported in metal coins between the cities involved. Ginaldo Giovanni Battista Strozzi issued an early form of promissory note in Medina del Campo Spain, against the city of Besançon in 1553. However, there exists notice of promissory notes being in used in Mediterranean commerce well ago that date.
In 2005, the Korean Ministry of Justice and a consortium of financial institutions announced the service of an electronic promissory note eNote service, after years of development, allowing entities to make promissory notes notes payable in business transactions digitally instead of on paper, for the first time in the world.
In the United States, eNotes were made possible as a result of the Electronic Signatures in Global and National Commerce Act in 2000 and the Uniform Electronic Transactions Act UETA.: 2 An eNote must meet all the standard to be a written promissory note.: 3
In 1930, under the League of Nations, a Convention providing a uniform law for bills of exchange and promissory notes was drafted and ratified by eighteen nations. Article 75 of the treaty stated that a promissory note shall contain: