Have you ever wondering what is a promissory contract? Have
you ever borrow a close friend a sum of money and never get back? Have you just
decided to borrow a sum of money to friend? Then, this is the right article for
you. Just to secure yourself that you’ll get your money back in the future.

A promissory contract is a note written down that the
borrower will pay a fixed sum of money to the lender, on the specified day, as
well the percentage of the principal amount from the primary fixed sum of
amount, plus any other declaration written down on the agreement. All
declarations have to be agreed upon by all members party who’re involved, prior
to the signature is being signed on the contract paper.

People who are not involved in the contract do not have the
right to add, influence or somehow, get involved with changes of the contract
agreed upon by the parties to the contract.

Generally, a promissory note is used by individuals rather
than businesses. However, it can sometimes be seen in family run businesses,
which do not have many traders and customers. Common cases of individuals’
promissory notes are borrowing/lending money amongst friends.

Failure to payback the sum of money by the date stated on
the promissory note is considered as breach of promissory note/contract. The
lender is able to take legal action against the borrower.

When a borrower has failed to payback the lender, it’s my
best advice that the lender take the following steps before decided to take any
legal action against the borrower: