Document background
A Demand Note is a crucial financial instrument widely used in Pakistani business and banking transactions. It serves as a formal acknowledgment of debt and a promise to pay, providing a clear legal basis for debt recovery under Pakistani law. The document is particularly useful in situations requiring immediate payment upon request, such as short-term loans, credit facilities, or security for business transactions. The Demand Note must comply with the Negotiable Instruments Act, 1881, and other relevant Pakistani legislation, including stamp duty requirements. It typically includes essential details such as the principal amount, interest rate, maker's unconditional promise to pay, and both parties' complete information. This type of document is preferred in situations where lenders need a simple yet legally enforceable instrument that can be quickly executed and enforced through Pakistani courts.
