What is a promissory note?

A promissory note is a legally binding document under Washington contract law that binds one party to pay a monetary amount to another party. It is commonly used in loan agreements, such as when someone borrows money from a bank or lending institution. The promissory note typically states the amount of money being borrowed, the payment schedule, and any applicable interest rate. It also includes the legal rights and responsibilities of both the lender and borrower. The borrower typically signs the document as an agreement to its terms, making them legally binding. Once the borrower has signed, the promissory note is a binding obligation on the part of the borrower to repay the lender according to the terms of the note. If the borrower fails to make payments, the lender may file a civil lawsuit to recoup the money.

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What is a promissory note?

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