Is a promissory note a binding document?

Full question:

Is a promissory note a binding document?

  • Category: Debts and Credit
  • Subcategory: Promissory Notes
  • Date:
  • State: Alabama

Answer:

If the note is properly supported by consideration, executed (signed) and contains the required language it is generally binding. Consideration can be in the form of money, services or other value. See the legal definition of promissory note for more detailed information.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

For a promissory note to be valid, it must include the following elements: a clear statement of the amount owed, the names of the parties involved, a signature from the borrower, and a promise to pay. Additionally, there must be consideration, which means something of value must be exchanged. Without these components, the note may not be enforceable in court.