Last Updated: August 22 2026
Is a demand note the same as a promissory note, and when can a lender demand payment in Ontario?
In Ontario, a promissory note is an unconditional written promise to pay a specified sum to a named person or bearer on demand or at a fixed or determinable future time, while a demand note is a promissory note with no fixed due date and becomes payable when the issuer makes a payment request. Under Bills of Exchange Act, R.S.C. 1985, c. B-4, the note must be a signed, written promise to pay a sum certain on demand or at a set time, and typical terms include principal, interest (if any), parties, issue date, and repayment terms. If you are dealing with a note you received or issued, SFG Paralegal Services LLP can help a paralegal review the wording and payment demand to explain your options and next steps; call (888) 398-0121 for guidance in Ontario.
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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 written document in which one party (the issuer) makes an unconditional promise to pay a certain amount of money to another party (the payor). Under a promissory note, payment is due at the stated time or upon receiving a request for repayment. A promissory note will include information about any applicable terms, such as the rate of interest, if any, that may be accrued.
Note: Please contact SFG Paralegal Services LLP by phone at: (888) 398-0121 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 significant number of inquiries regarding “lawyers near me” or “best lawyer in” typically indicate a request for prompt and proficient legal support rather than a particular professional designation. In Ontario, licensed paralegals are governed by the same Law Society that regulates lawyers and are permitted to represent clients in specified litigation issues. Advocacy, legal reasoning, and procedural expertise are fundamental to this role. SFG Paralegal Services LLP provides legal representation within its licensed parameters, focusing on strategic advantage, evidence preparation, and compelling advocacy aimed at securing efficient and positive outcomes for clients.
