A promissory note is like a cheque in that it can be endorsed onwards by the noteholder, in which case the debt is transferred along with the note.
Our online legal documents provide you with commercially sound and compliant legal documents suitable for small businesses operating here in Australia.Using the latest legal technology from our partners at Smart Drafter, complete our fast and easy online forms in as little as 5 minutes. Our online forms map the decision making of specialist human lawyers into an Expert Interview™, only asking relevant questions while giving expert advice and guidance.
A Promissory Note is a negotiable instrument issued by you, or from you, for the promise to pay a sum of money. It is relatively simple in comparison with the more complex loan agreements, and for that reason, may be a good option to consider as a paper trail that money is owed to you or payable by you. As a simple document, it is a good way for you to create a paper trail of a payment or loan of smaller sum.
If the Promissory Note contains complex clauses, it may be deemed to be a complex financial instrument and be regulated by the Corporations Act 2001 (Cth). It will be important at that time to seek the assistance of a lawyer.
Use this Promissory Note if:
- You would like to document that a sum is owed to you; or
- You would like to document that a sum is payable by you.
What does the Promissory Note cover?
- Payee and Issuer Details;
- Interest Details;
- Transferability; and
- Payable Details.
Other names for Promissory Note include:
- Payment on Demand; and
- Payment on Arrival.