The Short Term Unsecured Promissory Note is a vital financial instrument in Nigerian business and personal transactions, particularly useful when parties need a straightforward, documented lending arrangement without the complexity of collateral requirements. This document type is commonly employed for amounts that need to be repaid within a short timeframe, typically less than one year. The note must comply with Nigerian legal requirements, particularly the Bills of Exchange Act and Stamp Duties Act, and should clearly state the payment amount, terms, and parties involved. It's frequently used in business operations for working capital, bridge financing, or personal lending situations where the lender is comfortable with the borrower's creditworthiness without requiring security. The document's unsecured nature makes it particularly suitable for transactions between parties with established relationships or where the amount involved doesn't warrant the additional complexity of securing collateral.

1. Date of Issuance: The specific date when the promissory note is executed, which is crucial for determining maturity date and limitation periods

2. Maker Information: Full legal name, address, and contact details of the person/entity making the promise to pay

3. Payee Information: Full legal name, address, and contact details of the person/entity to whom the payment is to be made

4. Promise to Pay: Clear, unconditional promise to pay a specific sum of money

5. Payment Amount: The principal amount in both figures and words to avoid any ambiguity

6. Payment Terms: Maturity date, whether payable on demand or at a specific time, and payment method

7. Interest Rate: The applicable interest rate (if any) and how it is calculated

8. Place of Payment: Specific location or method where/how payment should be made

9. Signature Block: Space for maker's signature, with clear identification of the signing party