For a long time, the promissory note was used to settle values of products and goods that were sold through this document, which, although not common today, is a payment instrument that, if not paid, can be protested in court.
But how to fill out a promissory note? What are the types of promissory notes and what happens if there is no payment? Continue reading to find out more!
What this article covers:
What is a Promissory Note?
A promissory note works as a judicially registered confession of debt and can be filled out manually or electronically.
The amount must be paid by the due date, and with each payment (in the case of installments, very common in purchases of goods such as real estate), the creditor will deliver the paid invoice to the debtor, which serves as proof of payment for that amount.
What is the Promissory Note used for?
The promissory note, as previously mentioned, works as a notarized promise of payment that needs to be paid by the due date, so as not to cause a protest by the creditor.
This document is widely used in the case of financial loans without institutions and the purchase of real estate directly from the owner, as a way of assuring the creditor that the amount will be paid.
How is the Promissory Note completed?
The document can be completed in two ways, the most common is manually, in stationery stores it is still possible to find ready-made blocks, where you only need to fill in the debtor’s data.
For the promissory note to be valid, the note must have the following information: The name of the person who will receive the amount, which can be physical or legal, the amount to be paid, the signature of the person who will make the payment, address who will pay, and the CPF who will receive the amount.
Filling out the note is very similar to filling out a check, and if you opt for the electronic document, it is necessary to have the same data, in addition to having the title “Promissory Note” at the top to have judicial validity.
What are the types of Promissory Note?
Promissory notes can be presented in two ways: pro-solute and pro-solvent.
pro-solute promissory note
In the pro-solute note model, in case of non-payment of amounts, the creditor cannot give up the deal, having to take the debt to the legal department.
pro-solvendo promissory note
In this modality, the creditor not only manages to dispose of the business, but also manages to confiscate what was sold to the debtor, who, in fact, only becomes the owner of the good or product after payment of the outstanding amounts.
What happens if the Promissory Note is not paid?
In the event of non-payment, the creditor may sue the debtor in court for payment of the outstanding amount. In this way, the debtor is notified in court and if the amounts are not paid, the debtor may have his assets pledged, and if he is a legal entity, his company is subject to bankruptcy.
Therefore, it is vital to pay attention to the details surrounding the promissory notes, as well as paying attention to the payment date, to avoid the judicial protest of your business.
To follow more financial tips, stay tuned to our content, you will definitely find something that will help you to organize yourself better!