Demand Promissory Note for the United Kingdom

Demand Promissory Note Template for England and Wales

A Demand Promissory Note is a legal instrument under English and Welsh law that contains an unconditional written promise to pay a specified sum of money to a named recipient upon demand. It serves as evidence of debt and creates a legally binding obligation for the maker to pay the stated amount when requested by the payee. The document is governed by the Bills of Exchange Act 1882 and must meet specific statutory requirements to be enforceable in England and Wales.

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What is a Demand Promissory Note?

A Demand Promissory Note is commonly used in England and Wales when one party wishes to formalize a debt obligation that is payable upon request. This instrument, governed by the Bills of Exchange Act 1882, provides a clear record of the debt and payment terms. The note typically includes the principal amount, parties' details, date of execution, and any applicable interest rates. It offers flexibility as it can be used in various contexts, from simple personal loans to complex business transactions, while maintaining its enforceability under English and Welsh law.

What sections should be included in a Demand Promissory Note?

1. Date: Date of execution of the note

2. Promise to Pay: Unconditional promise to pay a specific sum, including the principal amount in both numbers and words

3. Maker Details: Full legal name and address of the person making the promise to pay

4. Payee Details: Full legal name and address of the person to whom payment is promised

5. Payment Terms: Clear specification that payment is due on demand, with any relevant payment instructions

6. Signature Block: Space for maker's signature, date, and any required witness signatures

What sections are optional to include in a Demand Promissory Note?

1. Interest Rate: Details of any interest charges on the principal sum, including rate and calculation method

2. Place of Payment: Specific location where payment must be made, if applicable

3. Security Provisions: Details of any security or collateral backing the note

4. Default Provisions: Consequences of default and any acceleration clauses

5. Governing Law: Explicit statement of governing law when note may be used across jurisdictions

What schedules should be included in a Demand Promissory Note?

1. Payment Schedule: Optional schedule detailing any agreed payment installments or partial payments

2. Security Details: Detailed description of any security or collateral provided, including asset descriptions and valuations

3. Witness Attestation: Formal attestation by witnesses, if required for the specific circumstances

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

England and Wales

Publisher

Genie AI

Document Type

Promissory Note

Sector

Banking

Cost

Free to use
Industries

Bills of Exchange Act 1882: Fundamental statute governing negotiable instruments in the UK, with sections 83-89 specifically addressing promissory notes and defining requirements for validity and enforceability

Law of Property (Miscellaneous Provisions) Act 1989: Governs requirements for written documents and any security interests that may be involved in the promissory note

Consumer Credit Act 1974: Applicable if the note involves consumer lending, affecting enforceability and required terms of the promissory note

Limitation Act 1980: Sets statutory time limits for enforcement of the note, generally 6 years for simple contracts

Contract Law Principles: Common law principles covering consideration, capacity to contract, and intention to create legal relations

Doctrine of Incorporation: Legal principle requiring that all terms must be clearly stated in the document

Financial Services and Markets Act 2000: Regulatory framework relevant if the note is part of regulated financial activity

Money Laundering Regulations 2017: Anti-money laundering requirements that may be applicable to the transaction

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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