The preparation of a loan agreement promissory note is a very simple affair. And it may be important especially y when lending small amounts to friends, acquaintances and family members. The presence of one serves as a form of written contract when the need arises. Loan agreement promissory note
When preparing one, it can be typed. This is to ensure that all the terms and conditions are legible. It also helps to avoid the borrower from breaching the contract while citing that the writing could not be seen and hence the terms were not understood.
The names of the people entering the agreement should be clearly indicated. That is, of the borrower and of the person offering the money. This is to make it clear for anyone who reads it. From having a look, one should tell who is who.
The note should be clearly dated. The date in which the transaction was entered should be shown. The one that shows when the last payment is to be made must also appear. This helps in knowing when action can be taken in the event of a breech.
The mode of payments agreed upon will need to be put in writing. It should show whether they are to be made in bits or the whole sum given at once. As for the bit by bit reimbursement, the sum expected should be stated. A repudiation must be included showing that any breech will lead to legal action.
A loan agreement promissory note will need to be signed by those involved. This could be done in the presence of an attorney. Although some fee may be needed, more benefit is got by the fact that the person borrowing will feel compelled to pay in time.
When preparing one, it can be typed. This is to ensure that all the terms and conditions are legible. It also helps to avoid the borrower from breaching the contract while citing that the writing could not be seen and hence the terms were not understood.
The names of the people entering the agreement should be clearly indicated. That is, of the borrower and of the person offering the money. This is to make it clear for anyone who reads it. From having a look, one should tell who is who.
The note should be clearly dated. The date in which the transaction was entered should be shown. The one that shows when the last payment is to be made must also appear. This helps in knowing when action can be taken in the event of a breech.
The mode of payments agreed upon will need to be put in writing. It should show whether they are to be made in bits or the whole sum given at once. As for the bit by bit reimbursement, the sum expected should be stated. A repudiation must be included showing that any breech will lead to legal action.
A loan agreement promissory note will need to be signed by those involved. This could be done in the presence of an attorney. Although some fee may be needed, more benefit is got by the fact that the person borrowing will feel compelled to pay in time.
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