Which of the following is true about a promissory note?
A)It is a three-party transaction.
B)It is not an order to pay.
C)The party who makes the promise is the lender.
D)The payee cannot transfer a note to a third party.

Question

Quizplus · Accepted Answer

A promissory note is a two-party transaction where one party makes a promise to pay a certain amount to another party. It is not an order to pay, which distinguishes it from a draft or check.

Which of the Following Is True About a Promissory Note