how does one write a formal IOU?

[The Stigenator]

I O U???

 

[CPA]

If I remember correctly from Bus Law, a promissory note should contain:

Date
A promise to pay or make whole
Time on or before the promise is to be completed
Signature from who is promising
name of who the promise is made out to
the consideration (or what is being promised)


hmmm, I think I'm forgetting something....

 

[Balt]

Originally posted by: CPA
If I remember correctly from Bus Law, a promissory note should contain:

Date
A promise to pay or make whole
Time on or before the promise is to be completed
Signature from who is promising
name of who the promise is made out to
the consideration (or what is being promised)


hmmm, I think I'm forgetting something....

You forgot that it should be written on a bar napkin.

 

[crypticlogin]

Originally posted by: CPA

hmmm, I think I'm forgetting something....

Signature has to be in the debtor's blood, I think.


Sorry, couldn't resist. No clue about a formal IOU.

 

[ElFenix]

as many hereby, aforementioned, such, and disclaimer of warranty clauses as you can fit on a sheet of paper

 

[VictorLazlo]

You can get official looking forms at OfficeMax. Just fill in the blanks, and get it notarized.

 

[The Stigenator]

Originally posted by: VictorLazlo
You can get official looking forms at OfficeMax. Just fill in the blanks, and get it notarized.

too much work.. im dealing with a local ATOT member.. thats all.

 

[VictorLazlo]

Originally posted by: The_good_guy

Originally posted by: VictorLazlo
You can get official looking forms at OfficeMax. Just fill in the blanks, and get it notarized.

too much work.. im dealing with a local ATOT member.. thats all.

I seriously doubt that a cocktail napkin with "I.O.U: $500. Signed, T.G.G." will hold up in small claims court.

 

[astroview]

Originally posted by: VictorLazlo

Originally posted by: The_good_guy

Originally posted by: VictorLazlo
You can get official looking forms at OfficeMax. Just fill in the blanks, and get it notarized.

too much work.. im dealing with a local ATOT member.. thats all.

I seriously doubt that a cocktail napkin with "I.O.U: $500. Signed, T.G.G." will hold up in small claims court.

You'd be wrong then VictorLazlo. The Supreme Court of Virginia disagreed with you in Lucy v. Zehmer. It's a hilarious case. 2 drunk guys make a K for land on a napkin, one guy thinks its a joke, the other guy doesn't know, K is enforced since it was reasonable for the duped guy to assume a K was made.


As for the original post, there is no one way to make a promissory note, ask 100 lawyers and you'll get 100 promissory notes. General Checklist:

1. 
   negotiable or nonnegotiable
   Principal amount
   Interest rate
   Payment terms
   Equal payments of principal and interest OR Interest only
   Scheduled payments?
   Payment on demand?
   Maturity date
   Prepayment
   Place of payment
   method of payment
   Events of default and remedies
   Security [if you're smart you'll get a lien on something to make you a secured creditor]
   

And of course include both signatures, a labeled background paragraph that states your intentions and who the parties are, include your addresses on it, define any terms you want to in a definitions section, and you must have consideration (what binds both parties)

 

[Yax]

I owe you $_______________.