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If you loan your friend money should he sign a promissory note or an IOU?
Wiki User
∙ 15y ago
Only if you ever want to see your money again.
Wiki User
∙ 15y ago
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What is the difference between a Promissory Note and a Loan?
A loan is a sum of money which is borrowed on the condition that it will be paid back.A promissory note is a written promise to pay the loan that sets forth the terms of the loan and is signed by both parties.
When should one get a promissory note?
A promissory note is to provide and record details of a loan. One should receive one if a personal loan, business loan or real estate transaction has taken place. A promissory note is legally binding and can be used in a court of law if the borrower does not pay. It is a more complicated version of an IOU.
Can you sue for money owed from a personal loan?
Sure, hopefully you have a signed promissory note as evidence of the loan. If not, its your word against the defendant.
Can you be sued for the balance of a promissory note if the property is re sold?
Absolutely. You signed a contract to pay for a loan of money. It doesn't matter whether you still have the property that was purchased with funds from the loan. The promissory note is a contract to pay and is enforceable in court.
Would a promissory note be null and void if nothing was ever lent or borrowed?
A promissory note is an unconditional promise to pay a fixed amount at a fixed time accruing a fixed interest thereafter.Promissory notes differ from IOUs in that they contain a specific promise to pay, rather than simply acknowledging that a debt exists. In common speech, other terms, such as "loan," "loan agreement," and "loan contract" may be used interchangeably with "promissory note" but these terms do not have the same legal meaning.So the answer depends on whther this is a true promissory note or an instrument that was created to memorialize a transaction that wasn't completed.ClarificationThe answer is that if there is a fully executed promissory note then it can be enforced in court. A fully executed promissory note is absolute evidence that the borrower owes the lender. A defense that the borrower never received the money would be difficult to prove. If the funds were not transferred to the borrower there should not be a fully executed promissory note.First, the promissory note should only be signed by the borrower at the same time the funds are handed over. Second, if one was executed and the funds were not paid over to the borrower then the promissory note should not be signed by the borrower and if signed, it should be destroyed since the loan was not completed.
What is the difference between a Promissory Note and a Loan?
A loan is a sum of money which is borrowed on the condition that it will be paid back.A promissory note is a written promise to pay the loan that sets forth the terms of the loan and is signed by both parties.
What does mean lend your money and lose your friend?
You should not lend money to your friends; if you do, either you will have to bother your friend to repay the loan, which will make your friend resent you, or your friend will not repay the loan, which will make you resent your friend.
When should one get a promissory note?
A promissory note is to provide and record details of a loan. One should receive one if a personal loan, business loan or real estate transaction has taken place. A promissory note is legally binding and can be used in a court of law if the borrower does not pay. It is a more complicated version of an IOU.
What is a sentence for promissory note?
I needed to sign a promissory note for my student loan money.The bank is legally owed money when you sign a promissory note.The promissory note was only one page long but used complicated language.
Can you sue for money owed from a personal loan?
Sure, hopefully you have a signed promissory note as evidence of the loan. If not, its your word against the defendant.
Can you be sued for the balance of a promissory note if the property is re sold?
Absolutely. You signed a contract to pay for a loan of money. It doesn't matter whether you still have the property that was purchased with funds from the loan. The promissory note is a contract to pay and is enforceable in court.
Would a promissory note be null and void if nothing was ever lent or borrowed?
A promissory note is an unconditional promise to pay a fixed amount at a fixed time accruing a fixed interest thereafter.Promissory notes differ from IOUs in that they contain a specific promise to pay, rather than simply acknowledging that a debt exists. In common speech, other terms, such as "loan," "loan agreement," and "loan contract" may be used interchangeably with "promissory note" but these terms do not have the same legal meaning.So the answer depends on whther this is a true promissory note or an instrument that was created to memorialize a transaction that wasn't completed.ClarificationThe answer is that if there is a fully executed promissory note then it can be enforced in court. A fully executed promissory note is absolute evidence that the borrower owes the lender. A defense that the borrower never received the money would be difficult to prove. If the funds were not transferred to the borrower there should not be a fully executed promissory note.First, the promissory note should only be signed by the borrower at the same time the funds are handed over. Second, if one was executed and the funds were not paid over to the borrower then the promissory note should not be signed by the borrower and if signed, it should be destroyed since the loan was not completed.
If you have a promissory note based on a business loan and you file bankruptcy on that business loan is the promissory note still valid?
Even though you file bankruptcy, you still have to honor the promissory note. If you are ordered to make installment payments then you will have to pay the promissory note in installments.
When referring to cash advances, what is a lead?
A lead is an opportunity to buy a person's debt, and more specifically a cash advance loan or "payday loan". Money can be made off these leads like a traditional loan, except you lend the money and hold the promissory note.
What is a paper note that promises to repay money in a certain lenght of time?
A paper note that a borrower promises to repay money in a certain length of time is called a promissory note. A bank loan is a type of promissory note. Individuals can also use this type of note when someone owes them money.
What happens if you don't sign a promissory note?
You don't get the loan
Which of these is a signed promise to pay back a loan?
promissory note
