Promissory Note

[naz_nomad]

How legally binding are they, and what is the best course of action to take on a defaulted one if you are the lender?


Thanks ... Naz

[kempie]

Promissory Notes are a form of legal contract to make payment and is covered by the same legislation as that for Bills of Exchange and Cheques.

A promissory note offers less protection to the payer than a cheque would.

e.g. if you purchase an item which you never receive, you can legally cancel a cheque to stop payment, however payment on the promissory note must be made on the due date whether you received the item or not.

[naz_nomad]

Great answer ... thanks for that