What Needs to be in a Promissory Note?

A promissory note is basically a written promise to do something, usually to pay money.  A promissory note is just a fancier and legally binding "IOU."  Under Ohio law, a promissory note carries the same force and effect of a written contract.

For simple obligations many people choose to write their own promissory notes.  In order to do this, the note must accurately describe what is being given in exchange for the payment of money.  It should also list a specific payment schedule and instructions for payment.  It should also be signed by both parties to the agreement.

For any high value or more complicated obligations (a promise to repay over one thousand dollars or more), then you should really have an attorney draw up the promissory note.  When the obligations are a bit more high stakes, then it is worth it to hire an attorney to make sure that everything is documented properly and that the agreement is enforceable in case something goes wrong.  

How long is a Promissory Note enforceable in Ohio?

In Ohio, the statute of limitations for breach of contract actions (which includes violations of promissory note obligations) is eight years.  This is 8 years from a breach of the obligation.  For example, if a promissory note has someone making monthly payments for 3 years and then all of the sudden they stop making payments, then the date of the breach would be the first missed payment.  Accordingly, the statute of limitations makes the cause of action expire 8 years from the date of the missed payment.

Ohio Promissory Note Attorneys

The attorneys at Harris & Engler help clients all over Ohio with business and civil matters, including preparation of and enforcement of promissory notes.  If you'd like to talk to an attorney about a promissory note or otherwise, then feel free to call (614) 610-9988.