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Non Negotiable Promissory Note for Singapore

Non Negotiable Promissory Note Template for Singapore

A Non-Negotiable Promissory Note under Singapore law is a written promise to pay a specific sum of money under defined terms. Unlike negotiable instruments, it cannot be transferred to third parties and must remain between the original parties. The document is governed by Singapore's Bills of Exchange Act and Contract Law, requiring clear specification of payment terms, parties involved, and the non-negotiable nature of the instrument.

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Non Negotiable Promissory Note

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What is a Non Negotiable Promissory Note?

A Non-Negotiable Promissory Note is commonly used in Singapore for documenting loan arrangements where the parties intend to maintain their original relationship without transfer rights. This document type is particularly useful for private lending arrangements, business loans, or installment purchases where the parties want to ensure the debt obligation remains between the original parties. The note must comply with Singapore's legal requirements, including clear payment terms, party identification, and explicit non-negotiability declaration.

What sections should be included in a Non Negotiable Promissory Note?

1. Promise to Pay Statement: Clear, unconditional promise to pay a specified sum

2. Payment Details: Specific amount, currency, and payment schedule

3. Parties: Full legal names and addresses of promiser and promisee

4. Non-Negotiability Declaration: Clear statement that the note is non-negotiable

5. Date: Date of execution of the promissory note

6. Governing Law: Statement that Singapore law governs the note

What sections are optional to include in a Non Negotiable Promissory Note?

1. Interest Clause: Terms of interest if applicable - used when interest is to be charged on the principal amount

2. Default Provisions: Consequences of default in payment - used when specific default terms are required

3. Security: Details of any collateral or security - used when the note is secured by assets

4. Prepayment Terms: Conditions for early payment - used when early payment options are allowed

What schedules should be included in a Non Negotiable Promissory Note?

1. Payment Schedule: Detailed breakdown of payment dates and amounts for installment payments

2. Security Details: Description of security or collateral when security is provided

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Singapore

Publisher

Ƶ

Document Type

Promissory Note

Sector

Banking

Cost

Free to use
Relevant legal definitions















Clauses


















Industries

Bills of Exchange Act (Chapter 23): Primary legislation that provides the basic framework for promissory notes, even though this specific note is non-negotiable

Contract and Commercial Law Act: Fundamental legislation governing contractual relationships and commercial transactions in Singapore

Consumer Protection (Fair Trading) Act: Relevant if the promissory note involves consumer transactions, ensuring fair trading practices

Limitation Act (Chapter 163): Establishes time limits for bringing legal action related to the promissory note

Moneylenders Act: Applicable if the promissory note involves money lending activities, regulating such transactions

Stamp Duties Act: Determines if and when stamp duty must be paid on the promissory note

Singapore Case Law Precedents: Relevant court decisions and precedents regarding promissory notes and their enforcement in Singapore

Common Law Principles: Principles regarding non-negotiable instruments that have been established through common law

Non-negotiability Requirement: Must clearly state that the instrument is 'non-negotiable' on the document

Essential Content Requirements: Must include: unconditional promise to pay, specified sum, payment schedule, party names, execution date, payment terms, and governing law clause

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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