Which document serves as a promise to pay a specified sum of money at a certain time?

A promissory note is a financial instrument in which one party makes an unconditional promise in writing to pay a designated sum of money to another party at a specified time or on demand. It is legally binding and typically contains details such as the amount to be paid, the interest rate (if applicable), the payment schedule, and the consequences of non-payment.

This makes the promissory note a fundamental document in transactions where credit is extended, allowing individuals and businesses to formalize a loan or debt agreement. It is a clear acknowledgment of the obligation to repay, distinguishing it from other financial instruments.

In contrast, a bond represents a loan made by an investor to a borrower (typically corporate or governmental) and usually involves a promise not just to repay the principal but also to pay interest over time, making it more complex than a simple promissory note. A draft is often used in commercial transactions, allowing the payer to draw funds from the bank, while a check is a specific type of draft that instructs a bank to transfer money from one account to another. Both drafts and checks do not serve as a straightforward promise to pay but rather as instruments that facilitate payment transactions.