A Promissory Note is a legally binding contract between two or more parties whereby one party agrees to repay to the other party a specific sum of money (called “Principal”) either on a fixed date or on demand.
The individual who promises to pay is called the “Maker”, and the person to whom payment is promised is called the “Payee” or “Holder”.
This Promissory Note - Individual (No Interest) is a written, dated and signed two-party instrument containing an unconditional promise by the Maker to pay a definite sum of money to the Holder, it also contains provisions allowing for the parties to decide whether the Promissory Note is either payable on demand or at a specific future date. Also, the note sets out the name and address of the bank where the Promissory Note is payable. In addition it contains a provision for legal fees and costs to be met by the Maker in the event of default if there is a legal action to collect.
This Promissory Note template is often used as a means to borrow funds or take out a loan.
The Promissory Note is usually held by the party to whom the money is owed, the Holder. When the amount due on the note is paid, the note must be cancelled and surrendered to the Maker.
A Promissory Note to be valid must only be signed and does not require an acknowledgement before a notary public.
A Promissory Note is different than an Acknowledgment of Debt (“IOU” note). An Acknowledgment of Debt is simply a document acknowledging a debt owed, instead a Promissory Note is a legally binding undertaking to pay the amount stated in the note.
This Promissory Note - Individual (No Interest) shall be used where the Maker is an individual, and it does not contain provisions for the payment of interest.
If you require a Promissory Note containing provisions for interest and instalments please see: Promissory Note - Individual (With Interest and Instalments).
We offer versions suitable for use by an individual or a company. If you require a Promissory Note where the Maker is a company please see: Promissory Note - Company (No Interest).
This Promissory Note - Individual (No Interest) is in Microsoft Word format, written in plain English easy to use and edit.