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The Earnest Money Promissory Note is a crucial document in Indian business transactions where a party needs to demonstrate serious intent through a financial commitment. This document is typically used in real estate transactions, major commercial deals, or any situation requiring a good faith deposit. The note must comply with Indian legislation, particularly the Negotiable Instruments Act, 1881, and the Indian Contract Act, 1872. It contains specific details about the promised payment, including amount, terms, and conditions. The document provides security to the recipient while creating a legally enforceable obligation for the maker. An Earnest Money Promissory Note is particularly valuable in situations where parties want to formalize their commitment before proceeding with a larger transaction.

1. Date and Place: Specifies the date of execution and location where the note is made

2. Parties: Identifies the maker (promisor) and payee (promisee) with full legal names and addresses

3. Promise to Pay: Clear statement of unconditional promise to pay, including the principal amount in both figures and words

4. Purpose: Specifies that this is for earnest money in relation to a specific transaction

5. Payment Terms: Details of when and how the payment will be made, including due date and payment method

6. Interest Rate: Specifies whether interest applies and if so, the rate and calculation method

7. Default Provisions: Consequences of default and acceleration clause

8. Governing Law: Specifies that Indian law governs the promissory note

9. Signature Block: Space for signatures of maker, witness(es), and notary if required