New Hampshire Note

In order for a contract to be enforceable, it must contain certain legal conditions such as an offer and an acceptance of that offer.When all of these conditions are addressed in the promissory note details and it is signed by both parties, the promissory note meets all the elements of a legally binding contract.

A promissory note is a financial instrument that contains a written promise by one party (the note's issuer or maker) to pay another party (the note's payee) a definite sum of money, either on demand or at a specified future date.

A simple promissory note might be for a lump sum repayment on a certain date. For example, you lend your friend $1,000 and he agrees to repay you by December 1. The full amount is due on that date, and there is no payment schedule involved.

In order for a promissory note to be valid and legally binding, it needs to include specific information. "A promissory note should include details including the amount loaned, the repayment schedule and whether it is secured or unsecured," says Wheeler.

A promissory note is usually held by the party owed money; once the debt has been fully discharged, it must be canceled by the payee and returned to the issuer.

Personal Promissory Notes This is a particular loan taken from family or friends. Commercial Here, the note is made when dealing with commercial lenders such as banks. Real Estate This is similar to commercial notes in terms of nonpayment consequences.

Date. The promissory note should include the date it was created at the top of the page. Amount. Loan terms. Interest rate. Collateral. Lender and borrower information. Signatures.

Keep the original promissory note. Once a lender executes a promissory note, he keeps the original of the promissory note. Accept full payment of the loan. Mark paid in full on the promissory note. Place a signature beside the paid in full notation. Mail the original promissory note to the borrower.