Promissory Note Send to Sign For Free

A promissory note should include the date of the loan, the dollar amount, the names of both parties, the rate of interest, any collateral involved, and the timeline for repayment. When this document is signed by both parties, it becomes a legally binding contract.

Signatures. Generally, promissory notes do not need to be notarized. Typically, legally enforceable promissory notes must be signed by individuals and contain unconditional promises to pay specific amounts of money. Generally, they also state due dates for payment and an agreed-upon interest rate.

Give the borrower the original promissory note, with a notation on it that says CANCELLED or PAID IN FULL. Keep a copy of this note for your records.

If the note does not contain any of these important terms surrounding the repayment of the loan, then the note cannot be legally enforced. If, for example, the note contains conditions for a certain amount to be paid every month, then the lender can enforce collection, if the due date on a given month has passed.

Perhaps the most vital document of the entire packet is the promissory note. This document provides evidence that money was borrowed and the borrower promises to repay it as agreed upon. The promissory note must have the signatures of the borrowers responsible for the loan.

Promissory notes are a valuable legal tool that any individual can use to legally bind another individual to an agreement for purchasing goods or borrowing money. A well-executed promissory note has the full effect of law behind it and is legally binding on both parties.

Even if you have the original note, it may be void if it was not written correctly. If the person you're trying to collect from didn't sign it and yes, this happens the note is void. It may also become void if it failed some other law, for example, if it was charging an illegally high rate of interest.