Post by briensmith on Sept 22, 2013 20:14:44 GMT 1
Hello,
A promissory note, often shortened to 'note', is a legally binding document that states the specific details of a loan transaction and is usually read and signed by people borrowing from most commercial lenders. The note should provide specific details on the amount of the original loan, known as the principal, the loan repayment schedule, and any applicable interest rate; it is not unusual for a promissory note to also contain details regarding any grace periods or penalties for defaulting. Although either party may draw up a promissory note, it's usually in the best interest of the lender to make sure all of the important elements are included. Once both parties sign a note, the precise terms of that contract are the ones that will be enforced during any future legal proceedings. A common example of a note being used often occurs when someone buys a new car; many times, a person does not have the thousands of dollars necessary to purchase the car, so a car loan is secured with a lender. Before any exchange of money can take place, the lender will usually request the specific repayment terms to be spelled out in writing and signed by both parties; this document would be considered a promissory note and is legally binding. No matter where the borrower goes or what the borrower does with the money, the lender can prove the existence of the original loan.
Thanks,
craig wilson and company patent agents canada
1081 BLOOR ST.WEST
SUITE 303
TORONTO,ON M6 H1M5
A promissory note, often shortened to 'note', is a legally binding document that states the specific details of a loan transaction and is usually read and signed by people borrowing from most commercial lenders. The note should provide specific details on the amount of the original loan, known as the principal, the loan repayment schedule, and any applicable interest rate; it is not unusual for a promissory note to also contain details regarding any grace periods or penalties for defaulting. Although either party may draw up a promissory note, it's usually in the best interest of the lender to make sure all of the important elements are included. Once both parties sign a note, the precise terms of that contract are the ones that will be enforced during any future legal proceedings. A common example of a note being used often occurs when someone buys a new car; many times, a person does not have the thousands of dollars necessary to purchase the car, so a car loan is secured with a lender. Before any exchange of money can take place, the lender will usually request the specific repayment terms to be spelled out in writing and signed by both parties; this document would be considered a promissory note and is legally binding. No matter where the borrower goes or what the borrower does with the money, the lender can prove the existence of the original loan.
Thanks,
craig wilson and company patent agents canada
1081 BLOOR ST.WEST
SUITE 303
TORONTO,ON M6 H1M5