Legal Definitions - hand note

A hand note refers to a handwritten promissory note. It is a written, often informal, promise by one party (the maker) to pay a specific sum of money to another party (the payee) either on demand or at a specified future date. While often less formal than a professionally drafted loan agreement, a hand note can still be a legally binding document if it contains the essential elements of a contract, such as an offer, acceptance, consideration, and clear terms.

Here are some examples to illustrate the concept of a hand note:

• Example 1: Personal Loan Between Friends

  Sarah needs $500 to cover an unexpected car repair. Her friend, Mark, agrees to lend her the money. To ensure clarity and a record of the agreement, Mark writes on a piece of paper: "I, Sarah Miller, promise to pay Mark Johnson $500 (five hundred dollars) by October 31, 2024, for a personal loan." Both Sarah and Mark sign and date the paper. This handwritten document serves as a hand note, formalizing Sarah's commitment to repay the loan.

• Example 2: Small Business Inventory Purchase

  A small bakery, "Sweet Treats," needs to purchase a large quantity of flour from its supplier, "Grain & Co.," but is temporarily short on cash. The owner of Sweet Treats and the sales manager from Grain & Co. agree that Sweet Treats will pay for the flour in 30 days. They quickly jot down an agreement on a notepad stating: "Sweet Treats promises to pay Grain & Co. $1,200 (one thousand two hundred dollars) for flour delivered on September 1, 2024, by October 1, 2024." Both parties sign. This handwritten promise to pay is a hand note, establishing the terms of the credit arrangement.

• Example 3: Family Loan for a Down Payment

  David wants to buy his first home, but he's a bit short on the down payment. His parents agree to lend him $10,000. To make sure there's a clear understanding of the repayment, David writes out a document stating: "I, David Chen, acknowledge receipt of $10,000 (ten thousand dollars) from my parents, Mr. and Mrs. Chen, as a loan for a home down payment. I agree to repay this amount in monthly installments of $200, beginning January 1, 2025, until the full amount is repaid." David and his parents sign and date the document. This informal, handwritten agreement functions as a hand note, outlining David's obligation to repay his parents.