A promissory note is a negotiable instrument which shows that one party is making a promise to pay a certain decided sum of money to the other party on some mutually agreed date and terms & conditions. Promissory note usually follows a legal agreement format and is a kind of deal between a lender and a debtor. It plays a vital role as it is a guarantee that the debtor will fulfill the promise and he is bound to pay a certain amount of money at the due time. A few important details are mentioned in this agreement like the names of both of the parties, the principal amount, the rate of interest, date of the contract and the due date (maturity date), rights of the payee in case of a default, agreed terms and conditions and the deadlines, etc.
In common practice, especially in the arguable business, verbal promises and the contracts hold no significant value neither are they considered reliable. Hence, both of the parties are advised to write a promissory note so that the payment and the contract could be assured. Furthermore, by drafting up this promissory note, in the case of a default, this can be held as an important evidence to file a successful suit against the defaulter party. Another use of this amazing document is that it serves as a binding document which means that a vital objective is to give a considerable amount of time to the party to arrange the large sum of money within the due time.
In the making of this note, there are two parties, one is the payee, who is the lender and the other one is the payer, who is the maker of this note. In simpler words, one party is the creditor and the other one is the debtor. The promissory note is also known as a financial instrument which contains all the terms of indebtedness, etc. The notes are saleable and unconditional and thus are used in businesses all around the world. In order to save time and energy, reasonable templates are available and can be used for effective measures.
Below is given a template that will help you do the job.
Preview and Details of Template
Promissory Note Template
A place for the picture is also provided. In case you don’t want to use pictures you can simply DELETE it.
File: Word (.doc) 2003+ and iPad
Size 45 Kb | Download
License: ENERGY [Personal Use Only]