172k views
4 votes
Which is true about a promissory note?

a) It may not be executed in connection with a loan on real property
b) It is an agreement to do or not to do a certain thing
c) It is the primary evidence of a loan
d) It is the term used for a note that is guaranteed or insured by a governmental agency

User Celuk
by
7.9k points

1 Answer

5 votes

Final answer:

A promissory note is a legal document that represents a promise to repay a debt. It is the primary evidence of a loan.

Step-by-step explanation:

A promissory note is a legal document that represents a promise to pay a certain amount of money by a specific date or according to a specific schedule. In relation to the options provided in the question:

a) It may not be executed in connection with a loan on real property: This statement is false. A promissory note can indeed be connected to a loan on real property, such as a mortgage.

b) It is an agreement to do or not to do a certain thing: This statement is also false. A promissory note is specifically a promise to repay a debt.

c) It is the primary evidence of a loan: This statement is true. A promissory note serves as evidence of a loan agreement between the borrower and the lender.

d) It is the term used for a note that is guaranteed or insured by a governmental agency: This statement is false. A promissory note is not necessarily guaranteed or insured by a governmental agency. It is simply a legal promise to repay a debt.

User Ofir Hadad
by
7.5k points