promissory note

Written promise to pay on demand, or at a fixed future time, a specific sum of money to a named person or bearer. Like a cheque, it is negotiable if endorsed by the payee. A commercial paper is a form of promissory note that can be bought and sold. These forms of payment are usually issued by large corporations at times when credit is otherwise difficult to obtain. It is often those who are inferior credit risks who are asked to sign promissory notes.