IOU notarize For Free - How To Write An Iou Contract

An IOU is written evidence of a debt. If signed by the borrower, it is even better evidence.But if someone you cannot or do not want to refuse needs a loan at a time or place when you can get no lawyer, note or collateral, a signed IOU is enforceable written evidence of a debt.

In order for any IOU to be legally binding, signatures from both the Lender and Borrower is needed. And in some states, a Notary Public and a Witness is needed to sign off on the IOU as well to be valid.

A promissory note includes a specific promise to pay, and the steps required to do so (like the repayment schedule), while an IOU merely acknowledges that a debt exists, and the amount one party owes another.

An IOU, a phonetic acronym of the words "I owe you," is a document that acknowledges the existence of a debt. An IOU is often viewed as an informal written agreement rather than a legally binding commitment.An IOU between two people conducting business may be followed up with a more formal written agreement.

However, to say that a written IOU has no legal value is incorrect.But if someone you cannot or do not want to refuse needs a loan at a time or place when you can get no lawyer, note or collateral, a signed IOU is enforceable written evidence of a debt.

Essentials of an IOUName of the debtor.Name of the creditor.Amount of money in question (written out in both words and numbers).When the debt will be repaid.If interest is to be charged until the debt is repaid, the details of how the interest is calculated should be spelled out.Signatures of both parties.More items...

Generally, as long as the promissory note contains legally acceptable interest rates, the signatures of the two contracted parties, and are within the applicable Statute of Limitations, they can be upheld in a court of law.