Document background
An IOU Note is a fundamental debt instrument used when one party (the debtor) wishes to formally acknowledge a debt obligation to another party (the creditor). Under Swiss law, this document must comply with the provisions of the Swiss Code of Obligations and should clearly state the debt amount, payment terms, and parties involved. The IOU Note can be used in various situations, from personal loans to business transactions, and may include additional elements such as interest rates, security arrangements, or payment schedules. This document type is particularly useful when parties want a straightforward but legally binding record of a debt obligation that can be enforced if necessary. While the basic form is relatively simple, the document can be adapted to include more complex arrangements while maintaining its essential character as an acknowledgment of debt.
