BUSINESS ADMINISTRATION
BUSINESS LAW
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A conditional order to pay
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An unconditional order to pay
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A conditional promise to pay
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An unconditional promise to pay
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Detailed explanation-1: -The promise to pay is an unconditional promise; this means your obligation to pay isn’t subject to any condition such as requiring that a specific event must first happen, or a particular action must first be taken.
Detailed explanation-2: -A promissory note is essentially a written promise to pay someone. This type of document is common in financial services and is something you’ve likely signed in the past if you’ve taken out any kind of loan. If you decide to lend money to someone, you may want to create a promissory note to formalize the loan.
Detailed explanation-3: -A promissory note cannot be made payable to the bearer, no matter whether it is payable on demand or after a certain time.
Detailed explanation-4: -The next important aspect of promissory notes meaning is that they are unconditional undertakings. The maker of these notes agrees to pay a certain sum either to a particular person or their bearers. This maker undertakes his responsibility to pay by affixing his signature on the notes.