Promissory Notes and Cheques
Issue No. 2429- The promissory note or bill of exchange, which is current among the businessmen, is not real money and does not carry any value by itself, but it is used as a sort of evidence of loan. Hence, a transaction does not take place with it, and it is of two kinds: 1- The real promissory note that a debtor gives to the creditor against his debt. 2. The friendly promissory note that a person gives to another person, without having any debts against it, and he means that the second person can give the promissory note to a third person and after deducting some, he can get the rest as cash. Also, a cheque is of two kinds like a promissory note: 1- Real cheque which can be cashed within a period of time and it is used in exchange for a commodity. However, a cheque which is payable at maturity time can be sold back to the debtor or to a third person for a lesser price. 2 – Friendly cheque which is not in exchange for a debt, in which case, there is harm in selling it.
