hich of the following statement is correct? Statement 1: Promissory Notes promises to pay the money that is due.Statement 2: A promissory note may be in writing and also be an oral contractual promise to pay money.a.Only statement 1 is true.b.Only statement 2 is true.c.Both statements are false.d.Both statements are true.
Question
hich of the following statement is correct? Statement 1: Promissory Notes promises to pay the money that is due.Statement 2: A promissory note may be in writing and also be an oral contractual promise to pay money.a.Only statement 1 is true.b.Only statement 2 is true.c.Both statements are false.d.Both statements are true.
Solution
The correct answer is a. Only statement 1 is true. A promissory note is a written agreement to pay the money that is due. It cannot be an oral contractual promise, it must be in writing. Therefore, statement 2 is false.
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A promissory note must always be in writing. It can never be an oral contractual promise to pay money. This is a legal as well as a customary requirement of such instruments.Select one:TrueFalse
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