A promissory note, in layman’s terms, is a legal document that serves as a written promise by one party to pay another party a specific sum of money, either on demand or at a set future date. It outlines key terms such as the principal amount, interest rate, repayment schedule, and any conditions for payment. Promissory notes are commonly used for loans, real estate transactions, or business financing. This document helps formalize lending agreements and serves as a legal record that can be enforced in court if necessary.