Free Promissory Note

Answer a few simple questions Print and download instantly It takes just 5 minutes

Free Promissory Note

  1. Answer a few simple questions
  2. Email, download or print instantly
  3. Just takes 5 minutes

Promissory Note


Personal lending
Real estate

Your Promissory Note

This document preview is formatted to fit your mobile device. The formatting will change when printed or viewed on a desktop computer.
Promissory Note Page of
Page of

(this "Note")




__________ of ______________________________________ (the "Borrower")


__________ of ______________________________________ (the "Lender")

Principal Amount:      $_____________ CAD

  1. FOR VALUE RECEIVED, The Borrower promises to pay to the Lender at such address as may be provided in writing to the Borrower, the principal sum of $_____________ CAD, without interest payable on the unpaid principal, beginning on October 28, 2020.
  2. This Note will be repaid in full on October 28th, 2020.
  3. The Borrower shall be liable for all costs, expenses and expenditures incurred including, without limitation, the complete legal costs of the Lender incurred by enforcing this Note as a result of any default by the Borrower and such costs will be added to the principal then outstanding and shall be due and payable by the Borrower to the Lender immediately upon demand of the Lender.
  4. If any term, covenant, condition or provision of this Note is held by a court of competent jurisdiction to be invalid, void or unenforceable, it is the parties' intent that such provision be reduced in scope by the court only to the extent deemed necessary by that court to render the provision reasonable and enforceable and the remainder of the provisions of this Note will in no way be affected, impaired or invalidated as a result.
  5. This Note will be construed in accordance with and governed by the laws of the Province of Alberta.
  6. This Note will enure to the benefit of and be binding upon the respective heirs, executors, administrators, successors and assigns of the Borrower and the Lender. The Borrower waives presentment for payment, notice of non-payment, protest and notice of protest.

IN WITNESS WHEREOF the parties have duly affixed their signatures under seal

this ________ day of ________________, ________.




this ________ day of ________________, ________.




Promissory Note

A Promissory Note, also referred to as an IOU, is a contract documenting a financial promise between two parties. The borrower (the person who received a loan) promises to pay back a sum to the lender, outlining when and how they will return the borrowed amount.

A Promissory Note is often used when the amount is fairly small or the agreement is straightforward.

Terms included in a Promissory Note:

  • The principal amount of the note, whether interest will be charged, and when it is due
  • Payment dates, penalties for default, and collateral (if any)
  • Contact information for each party and if they are an individual or a corporation

What is a payment default?

A payment default is when a borrower fails to make a payment on time, as per the agreed upon schedule. It is up to the lender to decide what payment defaults will be, and how to implement them. If a borrower misses too many payments, and provided collateral, the lender may (after taking the issue to court) seize the collateral in question in order to make up for some or all of the remaining amount due.

How do I create a payment plan?

How you create your payment plan depends on the amount lent, and when you wish it to be paid in full. Most people choose to allow for monthly payments to be made on a specified day of the month. Make sure that the amount due is affordable for both the borrower and the lender, as payments that are either too high or too low could cause issues for both parties.

When do I need a Promissory Note?

Promissory Notes, or IOUs, are generally recommended for people who have either borrowed or lent a sum of money. While you may not want to provide an IOU for the price of a coffee, a Promissory Note should be used for anything that will require payments over time or that cannot be paid back right away.

How do I enforce a Promissory Note?

To enforce a Promissory Note in the event of a missed payment or loan default, you'll need to:

  • Gather all documentation of the loaned amount and the agreement
  • Get in touch with the borrower and request the amount due

If the borrower does not respond, your next steps would be to:

  • Contact a lawyer and request that they provide a letter of collection to the borrower
  • Take legal action against the borrower and enforce the court's decision once it has been made


  • Attempt to collect through a third party, such as a bank or other collection agency

Related Documents:

  • Loan Agreement: a loan contract similar to a Promissory Note but with more extensive payment details
  • Bill of Sale: a proof of payment receipt that documents the purchase, sale, and transfer of goods from one person to another
  • Sales Agreement: a contract used to document and secure a promise of a purchase between buyers and sellers
  • Purchase of Business Agreement: an agreement used to transfer the ownership of a business from one party to another
  • Real Estate Purchase Agreement: a document used to outline the terms of a residential property deal between a seller and buyer

Frequently Asked Questions:

Promissory Note FAQ
Create your free Promissory Note in 5-10 minutes or less
Know someone who could benefit from free legal forms? Pass it along:
This document preview is formatted to fit your mobile device. The formatting will change when printed or viewed on a desktop computer.
Loading ...
Loading ...

Note: Your initial answers are saved automatically when you preview your document.
This screen can be used to save additional copies of your answers.