A beneficial promissory notice is actually an authored promise because of the a debtor to help you shell out a sum of cash in order to a loan provider abreast of the fresh occurrence out-of an event, constantly a demand for commission. No-one expects here become troubles first and you will are typical sure the borrowed funds will be paid down at some point. But exactly how enough time manage promissory cards will always be enforceable? What will happen when your amicable understanding behind the borrowed funds try undermined by the a falling out? The new quick response is if a promissory note stays enforceable depends both on what variety of mention it’s and if it gotten.
The latest Legal off Focus stored one to, because was a consult financing, the limitation months had expired well before the fresh new Kongs sued and you will it had been today far too late to do this
In law, there are two main brand of promissory notes: a note to own a request loan and you will a note having a beneficial contingent mortgage.