Negotiable instruments act

This query is : Resolved

shivani (Querist)
Follow

11 April 2017 respected sir/mam,

i couldnt understand the phrase: a note payable to the maker is not a promissorynote unless it is endorsed by the maker.

can u please help me?

CA Gopal Somani

CA Gopal Somani (Expert)
Follow

12 April 2017 It's like you can't write a promissory note saying that "I promise to pay myself Rs ..... on the day....."
But if you endorse it in somebody's name (transfer it to somebody) then it becomes a promissory note as you have to pay the amount to somebody else.
So a note will not be called as promissory note if it is payable to maker him/herself. But when he/she endorse it (transfer it) to somebody else's name then it becomes promissory note.

i hope it will be clear. Let me know if you have further questions.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok