Introduction to this document


Promissory note

If you are lending or borrowing money use this promissory note to create an unconditional promise to have the debt repaid. Creating a legally binding promissory note means you can feel protected because you have recorded the transaction and set out the repayment terms.

What should be included in the promissory note?

                                                                       the parties to the note

                                                                       the amount to be repaid (the debt)

                                                                       the date by which the debt is to be repaid

                                                                       whether interest is payable and if so how much.

Note.  To be an enforceable document, the amount to be repaid must be a “sum certain” and must also be unconditional. 

Warning.  Ensure before you lend money to any third party you carry out appropriate credit checks to ensure that they’re good for the debt so you stand a reasonable chance of getting your money back.