Simple iou contract
What Is a Promissory Note? A Promissory Note is also known as a loan agreement, IOU, personal note, or note payable. It is a document that: Describes a loan made from a lender to a borrower; Confirms the borrower's promise to pay back the sum of money, or principal, to the lender; Establishes a repayment plan for the amount borrowed Promissory Notes Constitute a Promise to Pay a Loan (Legally Enforceable) Today, (20th) of (May) in the year Two Thousand and (eleven), I, (your full name) guarantee to pay to the order of (name of payee), who is a resident of (street number, house/office number, city, postal code, country.) the amount of ($000) (write the amount in words). Yes, an IOU is a simple contract stipulating the terms of the loan. They are different from promissory notes , which are governed by more formal requirements under the Bills of Exchange Act. Holding Security or Collateral