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Is a promissory note binding if there is no consideration in return?
Wiki User
∙ 9y ago
In order to have a promissory note there must be consideration. If a bank gives you a mortgage, then the home is consideration for your payments.
Wiki User
∙ 9y ago
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Is a promissory note valid with no consideration?
No....a promissory note is not valid without a consideration.
Can you do a promissory note with no money exchanged?
Yes, but it wouldn't necessarily be binding as there must be consideration provided by both parties to such a agreement. The note would have no value and would be nothing more than an IOU.
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.
Wording for promissory note?
wording for promissory note with collateral
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.
Is a promissory note valid with no consideration?
No....a promissory note is not valid without a consideration.
Can a promissory note be legally binding if not notarized?
Any promissory note or other contract is binding in most states whether it is notarized or not. One party can dispute a signature, but that is a matter of law.
Can you do a promissory note with no money exchanged?
Yes, but it wouldn't necessarily be binding as there must be consideration provided by both parties to such a agreement. The note would have no value and would be nothing more than an IOU.
What do you do if you sold a vehicle to someone with a promissory note stating they will make payments and signed the title over if they do pay?
If they signed the promissory note, then it is legal, and binding.
How do you write legally binding promissory note?
The easiest way to write a legally binding promissory note yourself is to use a pre-formated promissory note form from a credible legal forms database. All you have to do is fill in the form with the appropriate information. Each state has certain requirements, therefore each form is specifically made for each state.
Is an IOU the same as a promissory note?
Yes, and if properly executed and witnessed it could be considered a legally binding contract.
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.
Wording for promissory note?
wording for promissory note with collateral
Is a promissory note legally binding?
There is no legal requirement that a promissory note be witnessed in order to be legally enforceable. In most cases, a written agreement is usually a written confirmation of a verbal agreement. Even without a witness to the promissory there, there many ways to prove the validity of the note such as handwriting analysis and evidence of the payment of the borrowed money such as a cancelled check.
If you sign a promissory note to avoid legal action and you don't repay it in full what legal action can be taken against you and is there a statute of limitations?
The holder of the promissory note can file a lawsuit against the signer/borrower in the debtor's state court of jurisdiction to recover monies owed. A promissory note is considered a written legally binding document and therefore is subject to the applicable SOL of the debtor's state of residency.
How do you issue a promissory note?
A promissory note is a fancy legal name for a legally phrased I.O.U.
Amount of promissory note is called?
The amount written on the face of a promissory note is called face value or principal. The date on which the promissory note is written is called the issue date.
