How do I create a legally binding promissory note for someone who owes me money?
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Yes, you can certainly write it up like that yourself, making sure that your promissory note clearly states the amount owed, the repayment schedule, and the late fee. Once it has been signed by both parties, it will constitute a legally binding agreement under general contract law principles.
In most places in the U.S., a signed promissory note is enforceable under UCC § 3-104, which defines a promissory note as a type of negotiable instrument. As long as the terms are clear and the document is properly executed, it is considered valid.
If he defaults after signing the promissory note, you can sue him in small claims court.
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Hello, there is a person who owes me $6,500. The proposed payment will be $40 per day, with a 10% delay. After presenting the promissory note to him, should I collect all of his documents and then go to a notary public to notarize the signature?
I understand your situation. Have you already presented the promissory note to the person who owes you $6,500?
No. We will meet soon.
Have you discussed with the person owing you money about the process of collecting the debt and getting all necessary documents from them?
Not yet. He just wants a dialogue, and I want a signed document.
Is there anything else the Lawyer should know before I connect you? Rest assured they'll be able to help with your debt collection.
Only if I need to formalize the document at the notary's office?
Hi, my name is Sarah. I am an attorney and I am happy to help. How can I assist you today with a legal question?
Hi Sarah, I'm Camille, and there is a guy who owes me around $6,500. I would like to give him a document that can prove the debt and also the payment. My proposal is $40.00 per day, for 164 days. If there is a daily delay, at the end of 7 days, an additional $40.00 will be charged. Can I make a promissory note? Do I need his documents and then send them to a notary public?
Yes, you can certainly write it up like that yourself, making sure that your promissory note clearly states the amount owed, the repayment schedule, and the late fee. Once it has been signed by both parties, it will constitute a legally binding agreement under general contract law principles.
In most places in the U.S., a signed promissory note is enforceable under UCC § 3-104, which defines a promissory note as a type of negotiable instrument. As long as the terms are clear and the document is properly executed, it is considered valid.
If he defaults after signing the promissory note, you can sue him in small claims court.
Ok Sarah, do you have the document?
Which document? A blank promissory note?
Yes.
You can find a form online that will provide one to you, specific to your state and county. That’s what I would recommend doing at this point. If you need anything further, please let me know. I’m happy to further assist in any way possible.
