Legal Definitions - sum payable

Definition: Sum payable refers to the amount of money that is owed and must be paid in full to satisfy a debt. This is especially true for negotiable instruments, where the maker becomes liable for the amount due.

Example: John borrowed $500 from his friend and signed a promissory note stating that he would repay the sum payable within six months. This means that John is obligated to pay the full $500 to his friend by the due date.

Explanation: In this example, the sum payable is the $500 that John borrowed from his friend. The promissory note serves as a negotiable instrument, making John liable for the amount due. If John fails to pay the full amount by the due date, he will be in default of the debt.