Promissory Note Template Ohio Without Interest
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FAQ
Most formal promissory notes will include interest, but it is not a requirement for a legally valid promissory note. If you do not want to charge your friend or family member interest, then make the loan interest-free or use 0% as your interest rate.
As to element (1), promissory notes (and contracts) both require consideration. Consideration is typically anything of value promised to another when making a contract/promissory note. One defense to a breach of contract or breach of promissory note suit, then, is that the contract/note did not have consideration.
At its most basic, a promissory note should include the following things: Date. Name of the lender and borrower. Loan amount. Whether the loan is secured or unsecured. If it's secured with collateral: What is the collateral? ... Payment amount and frequency. Payment due date. Whether the loan has a cosigner, and if so, who.
A promissory note is basically a written promise to do something, usually to pay money. A promissory note is just a fancier and legally binding "IOU." Under Ohio law, a promissory note carries the same force and effect of a written contract. For simple obligations many people choose to write their own promissory notes.
At its most basic, a promissory note should include the following things: Date. Name of the lender and borrower. Loan amount. Whether the loan is secured or unsecured. If it's secured with collateral: What is the collateral? ... Payment amount and frequency. Payment due date. Whether the loan has a cosigner, and if so, who.