Document background
The Individual Promissory Note is a fundamental financial instrument used in Danish business and personal transactions to document debt obligations. It is commonly used when one party lends money to another and requires a formal, legally binding promise of repayment. The document, governed by Danish law, particularly the Gældsbrevsloven (Danish Promissory Notes Act), can be used in various contexts including personal loans, business financing, or installment purchases. An Individual Promissory Note typically includes essential information such as the principal amount, payment terms, interest rates, and default provisions. The document's enforceability is supported by Danish legislation, making it a reliable tool for creditors while providing clear obligations for debtors. It can be either negotiable or non-negotiable, depending on the specific terms included, and may be secured or unsecured based on the parties' agreement.
