IOU Template For Free

However, to say that a written IOU has no legal value is incorrect.But if someone you cannot or do not want to refuse needs a loan at a time or place when you can get no lawyer, note or collateral, a signed IOU is enforceable written evidence of a debt.

Essentials of an IOUName of the debtor.Name of the creditor.Amount of money in question (written out in both words and numbers).When the debt will be repaid.If interest is to be charged until the debt is repaid, the details of how the interest is calculated should be spelled out.Signatures of both parties.More items...

An IOU is a document recording a debt and an informal agreement typically to pay someone, though it can be to do something. Without memorializing the debt in a more formal written contract, the IOU is not clearly legally binding, and thus more difficult to enforce.

An IOU, or I Owe You, is used by someone borrowing money (the borrower) to officially document that they owe someone (the lender) a debt. While an IOU is less formal than a promissory note, it is still a legally binding document that can be used in court, if necessary.

List the promissory note terms as specifically as possible in the next paragraph. State the loan amount, the interest rate and the loan repayment terms. If the loan will be repaid in a lump sum, state the date the payment is due and the full amount to be paid.

Other Uses of the Term IOU Bonds are technically a form of IOU, whereby an individual loans an amount of money to a company or government and is given a contract promising to repay the money with interest by a certain date. Whilst this agreement is sometimes referred to as an IOU, it is in fact legally binding.

An IOU is a document recording a debt and an informal agreement typically to pay someone, though it can be to do something. Without memorializing the debt in a more formal written contract, the IOU is not clearly legally binding, and thus more difficult to enforce.