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Promissory Note Letter for the United Kingdom

Promissory Note Letter Template for England and Wales

A Promissory Note Letter is a formal written promise to pay a specified sum of money to a named recipient at a predetermined date or on demand. Under English and Welsh law, it is governed primarily by the Bills of Exchange Act 1882 and represents a legally binding commitment. The document must contain an unconditional promise to pay, be in writing, be signed by the maker, and specify both the amount and the recipient.

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What is a Promissory Note Letter?

A Promissory Note Letter is commonly used when one party wishes to formalize a promise to pay another party a specific sum of money. The document, governed by English and Welsh law, provides legal protection for both the maker and the payee. It includes essential details such as payment amount, terms, interest (if applicable), and payment schedule. The Promissory Note Letter is particularly useful in situations requiring documented evidence of debt, such as personal loans, business financing, or installment payments.

What sections should be included in a Promissory Note Letter?

1. Date: Date of issuance of the promissory note

2. Maker Details: Full legal name and address of the person/entity making the promise

3. Payee Details: Full legal name and address of the person/entity to whom payment is promised

4. Amount: Principal sum promised, stated in words and figures

5. Payment Terms: When and how payment will be made

6. Signature Block: Space for maker's signature and witness details

What sections are optional to include in a Promissory Note Letter?

1. Interest Rate: Terms of interest calculation and payment, used when the note bears interest

2. Security: Details of any collateral or security arrangements, used when the note is secured

3. Default Provisions: Consequences of non-payment and remedies available to the payee, used when specific default terms are required

What schedules should be included in a Promissory Note Letter?

1. Payment Schedule: Detailed schedule of installment payments including dates and amounts

2. Security Details: Comprehensive description of any security or collateral provided

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

England and Wales

Publisher

Genie AI

Document Type

Promissory Note

Sector

Banking

Cost

Free to use
Relevant legal definitions































Clauses






















Industries

Bills of Exchange Act 1882: Primary legislation governing negotiable instruments including promissory notes. Section 83 defines promissory notes and Section 89 covers validity requirements.

Law of Property (Miscellaneous Provisions) Act 1989: Relevant for security interests related to promissory notes and Section 1 requirements for written documents.

Limitation Act 1980: Establishes time limits for enforcing the note, typically 6 years for simple contracts.

Consumer Credit Act 1974: Applicable if the promissory note involves consumer lending situations.

Financial Services and Markets Act 2000: Relevant when the note is part of regulated financial activities.

Money Laundering Regulations 2017: Ensures compliance with anti-money laundering requirements in financial transactions.

Contract Law Fundamentals: Common law principles including offer, acceptance, consideration, intention to create legal relations, and capacity to contract.

Doctrine of Incorporation: Common law principle requiring terms to be clearly stated in the document.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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