Promissory Note Signed By Borrower Only for the United Kingdom

Promissory Note Signed By Borrower Only Template for England and Wales

A promissory note is a written, signed, and legally binding document in which one party (the maker) commits to paying a specific sum of money to another party (the payee) under defined terms. Under English and Welsh law, this document is governed primarily by the Bills of Exchange Act 1882 and must contain an unconditional promise to pay. The note specifies the principal amount, interest rate (if any), payment schedule, and consequences of default.

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What is a Promissory Note Signed By Borrower Only?

A Promissory Note Signed By Borrower Only is commonly used in England and Wales when formalizing debt obligations between parties. This document type is particularly useful for private loans, business financing, or any situation where a formal acknowledgment of debt is required. The note must comply with the Bills of Exchange Act 1882 and includes essential details such as the loan amount, payment terms, interest rates, and repayment schedule. Unlike bilateral loan agreements, this unilateral instrument requires only the borrower's signature, making it a simpler but equally enforceable document for recording debt obligations.

What sections should be included in a Promissory Note Signed By Borrower Only?

1. Promise to Pay: Unconditional promise to pay, specifying exact amount in numbers and words

2. Payment Terms: Detailed payment terms including due date, interest rate (if any), and payment method

3. Maker Details: Full legal name and address of the borrower/maker of the note

4. Payee Details: Full legal name and address of the person/entity to whom payment is to be made

5. Date: Date of execution of the promissory note

6. Signature Block: Space for maker's signature, witness details, and date of signing

What sections are optional to include in a Promissory Note Signed By Borrower Only?

1. Security Provisions: Details of any collateral or security arrangements, used when the note is secured

2. Default Provisions: Terms specifying what constitutes default and consequences, recommended for higher-value notes

3. Prepayment Rights: Terms regarding early repayment rights and any associated penalties or benefits

4. Transfer Rights: Provisions regarding negotiability and transfer of the note to other parties

5. Late Payment Terms: Specifics about late payment penalties and additional interest charges

What schedules should be included in a Promissory Note Signed By Borrower Only?

1. Payment Schedule: Detailed schedule of payment dates and amounts if note is payable in instalments

2. Security Schedule: Detailed description of any collateral or security arrangements if note is secured

3. Interest Calculation Schedule: Details of interest calculation methodology if complex interest arrangements apply

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 legislation governing negotiable instruments including promissory notes. Section 83 defines promissory notes and sets out formal requirements for validity.

Consumer Credit Act 1974: Regulates consumer credit agreements, imposes specific documentation requirements and provides consumer protections when the borrower is an individual.

Limitation Act 1980: Sets time limits for enforcing the note (6 years for simple contracts) and affects the enforceability period.

Financial Services and Markets Act 2000: May be relevant if the promissory note is part of a regulated financial activity.

Unfair Contract Terms Act 1977: Applies to contractual terms and ensures fairness in contract terms for promissory notes.

Statute of Frauds 1677: Sets out requirements for written evidence of the debt.

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

Doctrine of Incorporation: Common law principles determining how terms are effectively incorporated into the promissory note.

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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