If an IOU is signed and notarized, can it hold up in court?
2007-09-25 13:08:55 · 4 answers · asked by Anonymous in Politics & Government ➔ Law & Ethics
I would say yes, because it would be the same as a receipt. But in order for it to be a binding a contract, I think the IOU would have to say when the debt would be re-payed. Otherwise a court would have to determine a reasonable amount of time for the debt to be re-payed. And whether the debt could be payed over multiple installments.
2007-09-25 13:15:15 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Most likely yes. IOUs as legal tender or monetary obligations vary by states. You'll have to see what your state law is governing 'bearer notes'. Good luck.\\
Generally, a notarized IOU would indicate there was a 'meeting of the minds' of the parties involved and therefore a legal obligation.
2007-09-25 20:14:54 · answer #2 · answered by jack w 6 · 1⤊ 0⤋
Yes. Of course, any provisions barred by the law of the state will be stricken but the remainder of the document is binding and judgement can be rendered in favor of borrower or lender. The losing party may also have to pay the expenses incurred in prosecuting the action: attorneys' fees, court costs, and other collection expenses.
This may vary from state to state, but generally, yes.
2007-09-25 20:14:46 · answer #3 · answered by Barbara E 4 · 1⤊ 0⤋
An IOU can be interpreted as a contract -- provided there is something (consideration) coming back from the other side.
As a contract, it would be enforced by the court.
2007-09-25 20:15:31 · answer #4 · answered by coragryph 7 · 2⤊ 2⤋