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The Demand Promissory Note is a crucial financial instrument in Philippine commercial practice, commonly used in both business and personal transactions where immediate repayment can be requested by the lender. This document type is specifically regulated under the Negotiable Instruments Law (Act No. 2031) and must include essential elements such as an unconditional promise to pay, a specific sum, and proper execution formalities. The Demand Promissory Note differs from term promissory notes as payment can be requested at any time without a fixed maturity date. It serves multiple purposes including documenting loans, credit arrangements, and financial obligations, while providing the payee with a flexible enforcement mechanism. The document's negotiable nature allows it to be transferred to other parties, making it a valuable tool in commercial transactions.

1. Promise to Pay: Clear and unconditional promise by the maker to pay a specific sum of money to the payee or order

2. Principal Amount: The exact amount of money being promised, stated both in numbers and words

3. Interest Rate: Specification of the applicable interest rate and calculation method

4. Payment Terms: Statement that the amount is payable on demand

5. Place of Payment: Specific location where payment must be made

6. Date and Execution: Date of execution and signature block for the maker