IS A HANDWRITTEN IOU LEGALLY ENFORCEABLE?
Yes, indeed, if it’s in the form of a “promissory note” or “bill of exchange”, says Andrea Loke, associate at Tito Isaac & Co LLP. The former is one that you not only write and sign to another person, but also promise to pay a certain sum of money. A bill of exchange does not contain a promise; neither does the borrower pledge to pay. But it’s an order for payment from whom the bill is addressed to. So, just “IOU $ 5,000” written and signed on a napkin at the bar when you were drunk doesn’t count. Do you have a question about the law that you want to find out?
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