Standard Promissory Note for Singapore

Standard Promissory Note Template for Singapore

A legally binding document under Singapore law that contains a written promise by one party (the maker) to pay a definite sum of money to another party (the payee) at a specified future date or on demand. The document is governed by Singapore's Bills of Exchange Act and Contracts Act, requiring specific elements such as an unconditional promise, definite sum, and clear payment terms to be enforceable.

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What is a Standard Promissory Note?

The Standard Promissory Note is a fundamental financial instrument in Singapore's legal framework, commonly used to formalize debt obligations between parties. It serves as evidence of debt and a legally binding commitment to repay. Under Singapore law, these notes must contain specific elements to be enforceable, including clear payment terms, definite amounts, and proper execution. The document is particularly useful in business transactions, private lending, and structured payment arrangements where formal documentation of a debt obligation is required.

What sections should be included in a Standard Promissory Note?

1. Date: Date of execution of the promissory note

2. Promise to Pay: Unconditional promise to pay a specific sum

3. Principal Amount: Clear statement of the amount promised to be paid

4. Payment Terms: Specific terms including due date and payment method

5. Maker's Details: Full name and address of the person making the promise

6. Payee's Details: Full name and address of the person to whom payment is promised

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

1. Interest Rate: Terms of interest payment including rate, calculation method and payment frequency

2. Security: Details of any collateral or security provided to secure the note

3. Acceleration Clause: Conditions under which the full amount becomes immediately due and payable

4. Default Provisions: Specific consequences and remedies in case of default

What schedules should be included in a Standard Promissory Note?

1. Payment Schedule: Detailed schedule of installment payments if applicable

2. Security Details: Detailed description of any security or collateral provided

3. Guarantor Information: Details of any guarantors including their obligations and contact information

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

Singapore

Publisher

Genie AI

Document Type

Promissory Note

Sector

Banking

Cost

Free to use
Industries

Contracts Act (Cap. 53): Primary legislation governing contract formation, validity, and enforcement in Singapore. Essential for establishing the basic legal framework of the promissory note as a contract.

Bills of Exchange Act (Cap. 23): Governs negotiable instruments including promissory notes, defining their essential characteristics, rights, and obligations of parties involved.

Moneylenders Act (Cap. 188): Relevant if the promissory note involves money lending activities. Sets restrictions on interest rates and regulates money lending practices.

Civil Law Act (Cap. 43): Contains provisions affecting contractual relationships and civil obligations in Singapore.

Limitation Act (Cap. 163): Sets the time limit (generally 6 years) within which legal action can be taken to enforce the promissory note.

Companies Act: Relevant if the promissory note is used as a security instrument, particularly for corporate transactions.

Stamp Duties Act (Cap. 312): Governs the stamp duties payable on certain instruments, including promissory notes in specific circumstances.

Formation Requirements: Legal requirements including clear payment terms, definite sum, written form, and maker's signature.

Interest Rate Regulations: Rules governing permissible interest rates and usury laws applicable to promissory notes in Singapore.

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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