A maker's right of early repayment, whether contained in the promissory note itself or in a collateral agreement, does not prevent the instrument from being a 'promissory note' under s 89(1) of the Bills of Exchange Act 1909 (Cth). The majority in Williamson v Rider is not followed in Western Australia. Where an information memorandum inviting investment in promissory notes contains statements about the purpose of funds and security arrangements, those statements may be merely representational rather than promissory, depending on their precision, detail, and the objective intention of the parties.
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