Document background
A Demand Promissory Note is commonly used in Singapore's business and financial transactions when one party needs to formalize a promise to pay another party a specific sum of money. This instrument, regulated under Singapore's Bills of Exchange Act, provides a flexible yet legally enforceable method of documenting debt obligations. It's particularly useful in situations requiring immediate payment upon demand, unlike term notes which specify a payment date. The note can include provisions for interest, security, and may be transferable to third parties. It's widely used in both commercial and personal lending contexts, offering creditors a straightforward means of evidencing and enforcing debt obligations.
