Last Updated: August 22 2026
Do I have a promissory note or a demand note, and when does payment become due in Ontario?
To determine whether your document is a promissory note or a demand note in Ontario, look for an unconditional written promise to pay a specified sum, the maker’s signature, and whether it is payable “on demand” versus at a fixed or determinable future time; a demand note has no specific due date and becomes due when the holder makes a demand for payment. If you need help reviewing the wording, parties, and repayment terms (including interest) for enforceability and next steps, Vescio Legal Services can help as a paralegal firm serving clients across Ontario, including Toronto and surrounding communities, and you can call (416) 400-8255 to book a free 15-minute consultation today.
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Understanding What Constitutes As a Promissory Note and What Is Meant By a Demand Note Versus a Common Note
A promissory note is a legal document that binds one party (the issuer) to pay a specified amount of money to another party (the payor). The payor is legally obligated to make payment at the predetermined time or upon receiving a demand for repayment from the issuer. A promissory note will detail any applicable terms, including the rate of interest, if applicable, that may be accrued.
Note: Please contact Vescio Legal Services by phone at: (416) 400-8255 to discuss any specific questions that you may have.
The Law
The Bills of Exchange Act, R.S.C. 1985, c. B-4, governs financial instruments such as currency, cheques, among other things, and defines a promissory note as:
176 (1) A promissory note is an unconditional promise in writing made by one person to another person, signed by the maker, engaging to pay, on demand or at a fixed or determinable future time, a sum certain in money to, or to the order of, a specified person or to bearer.
A promissory note is a contract between two parties, the borrower and the lender, where the borrower agrees to pay a certain amount of money to the lender at a specific time and under certain conditions. A bank note is a type of promissory note issued by a bank or other financial institution; but, it is backed by the assets of the bank which makes a bank note more secure than a regular promissory note.
Terms Upon Notes
A promissory note will typically include details of the principal amount due, the applicable interest rate, the parties involved including a "bearer of note" if a party is unspecified, the date of issue, the repayment terms, and the due date.
Payable Upon Demand
Demand notes are promissory notes without a specific due date as such a note becomes due upon demand of payment.
Summary Comment
A promissory note is a negotiable instrument and could consist as a cheque, loan agreement, or other document evidencing indebtedness.
NOTE: A considerable amount of online searches featuring “lawyers near me” or “best lawyer in” typically indicate a desire for prompt and proficient legal support instead of a particular professional designation. In Ontario, licensed paralegals are overseen by the same Law Society that governs lawyers and have the authority to represent clients in specific litigation issues. Key components of that role include advocacy, legal analysis, and procedural expertise. Vescio Legal Services provides legal representation within its licensed scope, focusing on strategic positioning, evidentiary preparation, and compelling advocacy intended to achieve efficient and beneficial outcomes for clients.
