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Payable On Demand Promissory Note for the United Kingdom

Payable On Demand Promissory Note Template for England and Wales

A Payable On Demand Promissory Note is a legally binding financial instrument under English and Welsh law, governed primarily by the Bills of Exchange Act 1882. It represents an unconditional written promise made by one party (the maker) to pay a specified sum of money to another party (the payee) immediately when demanded. The note creates a clear obligation for payment without conditions or qualifications, making it a powerful and straightforward debt instrument.

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Payable On Demand Promissory Note

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What is a Payable On Demand Promissory Note?

A Payable On Demand Promissory Note serves as a formal acknowledgment of debt and promise of repayment, commonly used in both business and personal contexts under English and Welsh law. This instrument is particularly useful when parties wish to document a loan or debt obligation with immediate enforceability upon demand. The note must contain specific elements to be valid, including the unconditional promise to pay, a specified sum, and the parties' details. Unlike term notes, these can be called for payment at any time by the payee, making them particularly suitable for situations requiring flexibility in payment timing.

What sections should be included in a Payable On Demand Promissory Note?

1. Date: Date of execution of the note

2. Promise to Pay: Unconditional promise to pay a specific sum

3. Principal Amount: The sum promised to be paid, in numbers and words

4. Maker Details: Full name and address of the person making the promise

5. Payee Details: Full name and address of the person to whom payment is promised

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

What sections are optional to include in a Payable On Demand Promissory Note?

1. Interest Rate: Terms of interest payment, applicable when interest is to be charged on the principal amount

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

3. Default Provisions: Consequences of default in payment, used when specific default terms are required

What schedules should be included in a Payable On Demand Promissory Note?

1. Payment Schedule: If partial payments are contemplated, though not common in on-demand notes

2. Security Details: Details of any security or collateral if the note is secured

Authors

Alex Denne

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

Jurisdiction

England and Wales

Document Type

Promissory Note

Sector

Banking

Cost

Free to use
Relevant legal definitions












Clauses
















Industries

Bills of Exchange Act 1882: The primary statute governing promissory notes in England and Wales. Section 83 defines promissory notes, and Section 89 covers the application of provisions relating to bills of exchange.

Law of Property Act 1925: Relevant legislation for matters relating to transfer of property rights in the context of promissory notes.

Limitation Act 1980: Sets statutory time limits for enforcing the note, generally 6 years from the date of demand.

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

Consumer Credit Act 1974: Applicable legislation if the promissory note involves a consumer transaction.

Unfair Contract Terms Act 1977: Legislation governing the fairness and enforceability of contract terms in England and Wales.

Financial Services and Markets Act 2000: Relevant if the promissory note involves regulated financial activities or regulated entities.

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