Note of hand

Note of hand – this legal term finds application in the area of Law of Contracts. It details a specific loan contract that any borrower of money could sign. This contract contains an unconditional, written and signed a promise to pay a certain amount of money, on demand or at a certain defined date in the future – usually to a concrete person or to the bearer. For example, the bank loan agreements consist of a note of hand. It is contrary to a bill of exchange. A note of hand is not drawn on any third party holding the payor’s money; it is a direct promise from the payor to the payee.

Also known as “promissory note”.

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