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A promissory note could become invalid if: It isn't signed by both parties. The note violates laws. One party tries to change the terms of the agreement without notifying the other party.

Sample promissory note for loans to family, friends PROMISSORY NOTE. FOR VALUE RECEIVED, the undersigned, (the "Maker"), hereby promises to pay to the order of ____________________ (LENDER NAME) ("Payee"), the principal sum of $ ____________ pursuant to the terms and conditions set forth herein. PAYMENT OF PRINCIPAL.

In India, a promissory note can be issued under Section 4 of the Negotiable Instruments Act, 1881, therefore making it a legal instrument and binding the parties by law, the source of funds being an unregulated method. Even so, promissory notes are classified into secured and unsecured notes.

A form of debt instrument, a promissory note represents a written promise on the part of the issuer to pay back another party. A promissory note will include the agreed-upon terms between the two parties, such as the maturity date, principal, interest, and issuer's signature.

The Maker or Drawer ? the person who prepares the note and promises to pay the amount mentioned therein.

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.

Although it's a legal document, writing a promissory note doesn't have to be difficult. There are even websites online that offer fill-in-the-blank templates, like eForms or .

Drawer or Maker: The promisor, also known as the maker or issuer of the promissory note, is the person who creates or issues the promissory note that specifies the sum to be paid. Drawee or Payee: It is the individual on whose behalf the promissory note is made or issued, also known as the promisee.