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Simple Promissory Note No Interest for Singapore

Simple Promissory Note No Interest Template for Singapore

A Simple Promissory Note without interest is a legally binding document under Singapore law that represents a written promise to pay a specific sum of money to a designated person or entity. The document follows Singapore's Contract Act and related legislation, providing a straightforward mechanism for documenting debt obligations without including interest charges. It includes essential elements such as the amount owed, payment terms, and parties' details, while complying with Singapore's stamp duty requirements.

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What is a Simple Promissory Note No Interest?

The Simple Promissory Note No Interest is commonly used in Singapore for documenting informal loans or payment obligations where parties wish to maintain a legally binding agreement without the complexity of interest calculations. This document type is particularly relevant under Singapore law when parties need to formalize a debt obligation while maintaining simplicity and clarity. The note includes fundamental elements such as the principal amount, payment terms, and party details, while adhering to Singapore's legal requirements for promissory notes. It serves as evidence of debt and can be used for enforcement purposes if necessary.

What sections should be included in a Simple Promissory Note No Interest?

1. Date: Date of execution of the promissory note

2. Parties: Full names and addresses of maker and payee

3. Promise to Pay: Unconditional promise to pay a specific sum

4. Payment Terms: Due date and payment method

5. Signature Block: Signature of maker and witness

What sections are optional to include in a Simple Promissory Note No Interest?

1. Default Clause: Consequences of failure to pay, use when additional security is needed

2. Acceleration Clause: Right to demand full payment upon default, use for higher-value notes

3. Prepayment Clause: Right to pay before due date, use when early payment might be expected

What schedules should be included in a Simple Promissory Note No Interest?

1. Payment Schedule: If payments are to be made in installments

2. Security Details: If the note is secured by any assets or guarantees

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

Contracts Act (Cap. 53): Primary legislation governing contract formation in Singapore, covering requirements for valid contracts, capacity to contract, and consideration requirements

Moneylenders Act (Cap. 188): Regulates moneylending activities in Singapore - relevant to ensure the promissory note doesn't inadvertently breach moneylending regulations and to distinguish between personal loans and moneylending business

Civil Law Act (Cap. 43): Contains provisions regarding enforcement of contracts and limitation periods for contractual claims in Singapore

Stamp Duties Act (Cap. 312): Outlines requirements for stamp duty on promissory notes, including proper execution and stamping requirements

Consumer Protection (Fair Trading) Act: Relevant when the promissory note is between a business and consumer, ensuring fair trading practices

Rules of Court: Governs enforcement mechanisms and legal procedures for recovery of debts in Singapore courts

Legal Requirements - Documentation: Essential elements including clear payment terms, definite amount, unconditional promise to pay, proper party identification, due date specification

Legal Requirements - Execution: Formal requirements including proper signatures, witnessing, and stamp duty compliance

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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