What is a promissory note?

A promissory note is a contract between two parties that involves the exchange of money. It is a document that is used as evidence in the court of law to prove that a debt has been entered into and must be repaid by one party to the other. In South Carolina, a promissory note is also known as a "writing of promise" or "IOU". This document must include certain details of the transaction, such as the date, amount, and repayment terms. Promissory notes must be signed by both parties in order to be legally binding and enforceable. It is important to note that all parties must be of legal age and have the capacity to enter into a contract when signing a promissory note. This document is important to ensure that both the lender and the borrower have a record of the terms and conditions of the agreement and also serves as an agreement that the debt must be repaid. The borrower agrees to pay back the amount of money loaned at the specific rate of interest and time frame that is stipulated in the agreement. This contract also holds both parties accountable if any of the terms are not met. In South Carolina, a promissory note will be treated as a legally binding agreement in the court of law should either party fail to meet its obligations.

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What is a promissory note?

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