agreements.
2, Promissory Note:
In Canada, a promissory note is a legally binding document that serves as a written promise to pay a certain sum of money to a specific person or entity at a predetermined date or upon demand. It is governed by the Bills of Exchange Act, which provides a legal framework for the use of promissory notes, bills of exchange, and other negotiable instruments. To be valid in Canada, a promissory note must include certain elements, including: 1. The name of the person or entity making the promise (the "maker") 2. The name of the person or entity to whom the promise is made (the "payee") 3. The amount of money being promised 4. The date on which the payment is due (or a statement that the payment is due on demand) 5. The signature of the maker Promissory notes in Canada can be either negotiable or non- negotiable. A negotiable promissory note can be transferred to a third party, who then becomes the new payee and has the right to enforce the note. A non-negotiable note, on the other hand, cannot be transferred to a third party, and only the original payee has the right to enforce the note. In case of default, the payee of a promissory note in Canada can take legal action to collect the debt, including suing the maker in court. However, before taking legal action, the payee is usually required to provide notice to the maker, giving them an opportunity to pay the debt.
Note: Before entering into a Promissory Note (PN) agreement, I
39
Powered by FlippingBook