Law & Legal Issues
Loans
Mortgages

Is a promissory note legally binding?

151617

Answer

User Avatar
Wiki User
01/05/2013

Yes, if it is properly worded by the lender and signed by the borrower.

It is legally binding if it contains all the required information and is signed by the borrower. A promissory note must state the principal amount of the debt, the interest rate (if any), how the debt is to be repaid, the date on which it is due (or in the case of a demand note, it must state that it is due on demand by the lender), and any other terms the parties have agreed to.

MegaDox.com is a good source for promissory note templates that are easy to use and understand.