The only difference between a promissory note and a bill of exchange is that the maker of a note pays the payee personally, rather than ordering a third party to do so. A promissory note is a legal instrument (more particularly, a financial instrument), in which one party (the maker or issuer) promises in writing to pay a determinate sum of money to the other (the payee), either at a fixed or determinable future time or on demand of the payee, under specific terms

Format The promissory note begins with a statement that includes the date and a summary of the contract, such as a statement, used on an Expert Law form, that "on this date the undersigned borrower promises to repay the lender the specified sum and interest rate." The body of the promissory note contains the sections that detail the agreement, or promise. The document should end with a statement that the parties sign under penalty of perjury, the date of signing, and the names and signatures of the borrower, lender and witness.

the promissory note is interpreted and enforced under the laws of the state specified.

A promissory note is a contract or agreement between two parties that involves a debt. The promissory note includes detailed information about the loan. A standard promissory note has six main elements. The agreement should contain the date, name and address of the borrower, a description of the purpose of the loan, repayment terms (including interest rate, if applicable), a description of consequences if the borrower reneges on the agreement and a signature area for both the borrower and lender.

Effects Since a promissory note is written and legally binding, drawing one up makes the debt official and easier to prove in case of a dispute. It is intended to help the two parties avoid confusion or disagreement over the loan terms. Purpose of Promissory Note
An individual may sign a promissory note when she wants to make a purchase but does not have the cash to pay for the item. Consumers also sign promissory notes when they need to borrow money. The promissory note may explain the terms and conditions of the loan.