PROMISSORY NOTE. A written promise to pay a certain sum of money, at a future time, unconditionally. 7 Watts & S. Penn. 264 ; 2 Humphr. Tenn. 143; 10 Wend. 1sT. Y. 675; 1 Ala. 263 ; 7 Mo. 42 ; 2 Cow. N.
Y. 536 ; 6 N. H. 364; 7 Vern. Ch. 22.
2. A promissory note differs from a mere acknowledgment of debt without any promise to pay, as when the debtor gives his creditor an I 0 U. See 2*Yerg. Tenn. 50; 15 Mees.
W. Exch. 23. But see 2 Humphr. Tenn. 143 ; 6 Ala. N. s. 373. ln its form it usually contains a promise to pay, at a time therein expres4ed; a sum of money to a certain per son therein named, or to his order, for value received. It is dated and signed by the maker. It is never under seal.
He who makes this promise is called the maker, and he to whom it is made is the payee. Bayley, Bills, 1 ; 3 Kent, Comm. 46.
3. Although a promissory note, in its ori ginal shape, bears no resemblance to a bill of exchange, yet when indorsed it is exactly similar to one ; for then it is an order by the indorser of the note upon the maker t, pay the indorsee. The indorser is as it were the drawer ; the maker, the acceptor ; and the indorsee, the payee. 4 Burr. 669; 4 Term, 148 ; 3 Burr. 1224.
Most of the rules applicable to bills of ex change equally affect promissory notes. No particular form is requisite to these instru ments: a promise to deliver the money, or to be accountable for it, or that the payee shall have it, is sufficient. Chitty, Bills, 53, 54.
4. There are two principal qualities essen tial to the validity of a note: first, that it be payable at all events, not dependent on any contingency, 20 Pick. Mass. 132 ; 22 id. 132, nor payable out of uny particular fund. 3 J. J. NUrsh. Ky. 170, 542 ; 5 Ark. 441 ; 2Blackf. Ind. ; 1 'Bibb, Ky. 503 ; 9 Miss. 393; 3 Pick. Mass. 541 ; 4 Hawks, No. C. 102 ; 5 How. 382. Second, it is required that it be for the payment of money only, 10 Serg. & R. Penn. 94; 4 Watts, Penn. 400 ; 11 Vt. 268, and not in bank-notes; though it 'has been held differently in the state of New York. 9 Johns. N. Y. 120 ; 19 id. 144.
5. A promissory note payable to order or bearer passes by indorsement, and, although a chose in action, the holder may bring suit on it in his own name. Although a simple contract, a sufficient consideration is implied from the nature of the instrument. See 5 Comyns, Dig. 133, n., 151, 472 ; Smith, Merc. Law, b. 3, c. 1 4 Barnew. & C. 236; 1 Carr.
& M. 16. See BILL OF EXCHANGE ; iNDORSE MENT ; NOTICE.