Concept in Definition ABC

The promissory note is one of the most used tools in the exchange commercial for, in the event that a natural person or company requests another natural person, company or entity financial a loan of a specified amount of money, record the debt and on the other hand guarantee the collection of the same according to the period of time that has been stipulated between both parties, prior to the signing of the promissory note.

The preparation of a promissory note will require the observation of a series of requirements or conditions that will be fundamental for decide the validity of the same and in case tomorrow it happens that the debt is not settled or canceled in a timely manner as established, the person or company that issued the same has the possibility of making the pertinent claim before the corresponding authorities judicial.

First of all, it should be indicated in some passage of the document the term I will pay which must be written in the language spoken in the country where it was signed

. As long as and to be distinguished from other credit titles, the promissory note must have the promise to pay the amount of money requested, which must be expressed in letters and numbers with their pertinent currency and in the event that the return of the money is stipulated through an international currency, its international equivalent must be indicated in which the taking.

The beneficiary name, that is, the person who will receive the money and who will have the obligation to return it in a timely manner. It can be treated, as we said above, of a natural or legal person. And the last conditions are that its content It must indicate the date and place chosen to make the future payment thereof, as well as the date and place in which it was signed and the pertinent signature of the person who will contract the debt..

Payment or return can also be agreed not in a single chance, but through several installments, in this case what is done is withholding the promissory note until the last of those installments is paid, but it will be consigned in some margin of the document, the compliance of the monthly or weekly obligations that have been agreed upon at the firm.

Promissory Notes