What type of promise does commercial paper represent?

Commercial paper represents an unconditional written promise to pay a specified amount of money at a future date or on demand. This means that the promise is not contingent upon any outside factors or conditions; the issuer is obligated to pay the face value of the commercial paper as stated in the document. This characteristic makes it a secure and straightforward financial instrument, often used by businesses to manage short-term financing needs.

In contrast, a conditional written promise would require certain conditions to be met before payment is made, which is not applicable in the context of commercial paper. Implied promises are not explicitly stated in terms; instead, they are inferred from the circumstances, and a verbal promise would lack the legal enforceability and formality expected in financial instruments like commercial paper. Therefore, the nature of commercial paper as an unconditional written promise aligns perfectly with the characteristics that define its use in finance and commerce.