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Promissory NotesUnderstanding the key use of legal documents – often, to protect legal transactions between two or more parties – will help you understand the role of promissory notes. These “notes” or legal forms are actually great ways to track debt such as when a loan has been made between two individuals or businesses. With both parties agreeing to the “promise” made, a legal transaction can have the legal weight of any other type of contract available today.
It’s best to download these types of legal forms in packages in order to ensure two things: first, that you’ll always have the right legal forms handy should you ever need them in the future. Second, you’ll want to make sure that you pay a good price and actually download the right legal form for your specific transaction!
Of course, there are different types of payment methods possible, which is why promissory note packages will have different forms available.
With balloon payments, a promissory note will cover an even payment monthly until the one final large “balloon” payment is made at the end. This is a typical way of handling re-payment between individuals as well as businesses, which is why it’s important to cover your interests with a promissory note.
Installment plans are also very common, and typically involve a flat fee paid monthly over time until the entirety of the promised amount is paid off. Promissory notes that cover installment plans will be part of any solid promissory note package.
On demand payments mean that the person(s) to whom the money is owed can demand payment at any time. This obviously gives the debtor less power in the situation, but a good promissory note contract will make sure that the agreement is ironclad.
Be sure to find the right promissory note to fit your particular needs.