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The Informal Promissory Note is a commonly used financial instrument in Pakistan's business and personal lending landscape. This document type is particularly valuable when parties need a simple yet legally enforceable record of debt without the complexity of formal loan agreements. The document finds its legal basis in Pakistan's Negotiable Instruments Act 1881 and must comply with basic requirements including clear identification of parties, specific promise to pay, and defined payment terms. While informal in nature, these promissory notes play a crucial role in facilitating financial transactions, especially in situations involving personal loans, small business financing, or short-term credit arrangements. The document's simplicity and flexibility make it an attractive option for various transactions, though parties should ensure compliance with Islamic banking principles where applicable.

1. Date and Place: Clear statement of the date and location where the promissory note is executed

2. Parties: Full legal names and addresses of the maker (promisor) and payee (promisee)

3. Promise to Pay: Unconditional promise to pay with clearly stated amount in both figures and words

4. Payment Terms: Due date or payment schedule, including whether payment is on demand or at a specific future date

5. Mode of Payment: Specified method of payment (cash, bank transfer, etc.)

6. Signature Block: Space for signatures of the maker and witness(es) with their complete details