A Promissory Note is a loan agreement- is a legal document which defines the details of a loan made between two people. This document clearly outline the borrower’s promise to repay the loan in full amount, within a specified time. This serves as a written record of transaction and the borrower’s intention.
A promissory note is generally a way of deciding the agreement between the two parties. The agreement establishes the dates, terms, amount of each payment due. Without one you may not get paid on time.
Promissory Note provides flexible options to obtain funds very easily. Inserting the financial terms in writing protects both the lender and the borrower. This document is legal record of the agreement and will help in making sure that the money is paid in full.
No, there is no requirement for a witness to witnes the signing of a promissory note. So, a witness might need to present while you sign the promissory note if state-specific laws require it.
Even if it is not required, having a third part objective witnessing the signing of the note will be a better evidence if you need to encourage the agreed-upon repayment of the note.