promissory note
promissory note, defined:
a written promise to pay a given some of money. A promissory note is a contractual obligation used frequently as means of guaranteeing payment of a long-term debt.
promissory note, as it might be used:
The court found that the promissory note was in fact a mortgage.
An example of promissory note:
Ogden and Agnes own a small plumbing company, OA Plumbing. Another local plumber is going out of business and wants to sell off his equipment. The owner of the defunct company reaches an agreement with OA Plumbing, agreeing to take a promissory note for the full value of the equipment to be paid within eighteen months.
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Clear-Point Law Dictionary
