How Is Promissory Note Used In Business Transactions?

Legal documents are written agreements between two or more parties. These documents include contracts, deeds, wills, leases, mortgages, etc. A promissory note is a type of loan agreement where the borrower promises to pay back the lender at some point in the future. A promissory note is similar to a contract, however, it is not legally binding until signed. Therefore, both parties - namely a lender and a borrower, must sign this type of a note - in order to make it valid in a court of law.