Last Updated: August 21 2026
Do I have a promissory note or a demand note, and what should I do in Ontario if someone is trying to collect on it?
Freed Legal Services can help you determine whether a document is a promissory note under Bills of Exchange Act, R.S.C. 1985, c. B-4, s. 176(1), and whether it is payable on demand (a demand note with no fixed due date) versus a common note with a fixed or determinable repayment date. A paralegal can review what the issuer promised to pay, who the maker and payee are, whether it is unconditional, the principal and any interest terms, and what “demand” means in your specific language, so you understand your options before making payments or responding to a collection attempt. Call (800) 716-1897 to discuss your document and next steps, including how demand-based collection timelines and proof requirements can affect your position in Ontario.
Add this website to Google Preferred Sources
Understanding What Constitutes As a Promissory Note and What Is Meant By a Demand Note Versus a Common Note
A promissory note is a form of negotiable instrument whereby a party (the issuer) makes an unconditional promise in writing to pay a sum of money to another party (the payee). Payment becomes due under a promissory note at fixed time stated within the promissory note or upon receipt of a demand for repayment. A promissory note will also contain details of any applicable terms such as a rate of accruing interest, if any.
Note: Please contact Freed Legal Services by phone at: (800) 716-1897 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 a type of promissory note but differ whereas a demand note lacks a specified due date and instead becomes due upon request of payment.
Summary Comment
A promissory note is a legal document that states a promise to pay a certain amount of money. A promissory note may take the form of a cheque, loan agreement, or other document, that serves as proof of an outstanding debt.
NOTE: A significant quantity of inquiries featuring “lawyers near me” or “best lawyer in” typically indicates a requirement for prompt and proficient legal counsel rather than a specific job title. In Ontario, “licensed paralegals” operate under the regulation of the same Law Society that supervises lawyers and are permitted to represent clients in specific litigation cases. Skills in advocacy, legal analysis, and procedural proficiency are fundamental to that function. Freed Legal Services provides legal representation within its authorized mandate/scope, focusing on strategic positioning, evidentiary preparation, and compelling advocacy aimed at securing efficient and advantageous outcomes for clients.
