What if you have a promissory note that requires you to pay $100,000 in 5 annual payments of $10,000. The five payments equal only $50,000, but note is for $100,000. Are you required to pay the other $50,000?
2007-07-12 11:20:57 · 4 answers · asked by newhousenewbie1234 1 in Business & Finance ➔ Personal Finance
If you signed a promissory note, the most important information in it is the total amount. You are required to pay $100,000. If you want to argue over the number of payments (which should be 10 if they are $10,000 each) OR argue the amount (which should be $20,000 if there are 5 payments), you can do that in court.
Otherwise, if the promissory note does not specify a total owed, just 5 payments for $10,000 each, then legally you only agreed to pay $50,000 on that promissory note.
That does not dismiss you from owing $100,000, it's just proof that you only AGREED to pay $50,000.
2007-07-12 11:32:10 · answer #1 · answered by Anonymous · 1⤊ 0⤋
I'd have to see the promissory note to be tell you how, but unless the person who wrote the note is hopelessly incompetent, the note calls for more payments than you mentioned. Is it possible the $10,000 is the annual interest payment and the full $100,000 principal is due at the end of five years?
2007-07-12 11:34:18 · answer #2 · answered by STEVEN F 7 · 0⤊ 0⤋
Yes, it is probably a "balloon" payment at the end of the 5 year term.
2007-07-12 11:26:21 · answer #3 · answered by Patrick M 2 · 1⤊ 0⤋
Nope, that's your's free and clear !!
2007-07-12 11:25:35 · answer #4 · answered by zanthus 5 · 0⤊ 0⤋