Common Contracts
1 similar Iou Agreement contracts
We owe you owe form pdfIou Agreement • July 3rd, 2023
An I Owe You (IOU) contract is a simple 1-page document that serves as a guarantee (or “promise”) to pay back loaned money. It’s an informal contract used by well-acquainted individuals who trust one another. In many cases, an IOU is used as a placeholder before an official loan agreement is drafted. What is an “I Owe You?” An “I Owe You” agreement is as simple as it sounds – it’s a document that states a person owes another person a sum of money. From a legal standpoint, IOUs are weak in terms of their ability to effectively bind the parties. A legal contract requires three (3) things in order to be valid: an offer, acceptance of the offer, and consideration. Due to the simple nature of IOUs, they often leave out sections that detail repayment and interest (the consideration). This can make it exceptionally difficult to have the document enforced in a court of law (should it come to that point). However, IOUs come in handy for individuals looking to get something down on paper quickly
