Simple Note Payable Agreement Template for Pakistan

The Simple Note Payable Agreement is a fundamental financial instrument used in Pakistani business and personal transactions to document debt obligations. This agreement is particularly useful for straightforward lending arrangements where one party promises to pay a specified sum to another, with clear terms regarding interest and repayment. The document must comply with Pakistani legislation, particularly the Negotiable Instruments Act 1881 and Contract Act 1872, and requires proper stamping under the Stamp Act 1899. It's commonly used in business financing, personal loans, and commercial transactions where a formal record of debt obligation is needed. The agreement's simplicity makes it ideal for uncomplicated loan arrangements while maintaining legal enforceability under Pakistani law.

1. Parties: Identifies and provides full details of the Lender and Borrower, including legal names, addresses, and any registration numbers if applicable

2. Background: Brief context of the loan arrangement and relationship between parties

3. Definitions: Defines key terms used in the agreement including 'Principal Amount', 'Interest Rate', 'Maturity Date', and 'Event of Default'

4. Promise to Pay: Clear statement of the borrower's promise to pay the principal amount plus interest

5. Principal Amount: Specifies the exact amount being borrowed in both numbers and words

6. Interest Rate: States the applicable interest rate, calculation method, and payment frequency

7. Payment Terms: Details of when and how payments will be made, including the maturity date

8. Events of Default: Specifies circumstances that constitute default and consequences

9. Representations and Warranties: Basic declarations by the borrower regarding their ability to repay and legal capacity

10. Governing Law: Specifies that Pakistani law governs the agreement

11. Execution: Signature blocks and attestation requirements