A promissory note is a written financial document in which one party, known as the maker, promises to pay a specific amount of money to another party, called the payee, at a designated time or on demand. This note includes details such as the amount owed, interest rate, and repayment schedule, making it a legally binding agreement. Promissory notes are commonly used in various financial transactions, including loans and real estate deals. They can be transferred to others, allowing the payee to sell or assign the note to a third party, which can help in managing debts and investments.