Ask a lawyer:
Provide a template for a Promissory Note.

mwakili.com

Promissory Note Template

This is a sample Promissory Note template. You should consult with a lawyer to ensure that the template is suitable for your specific needs.

1. Introduction

This Promissory Note ("Note") is made and entered into as of [Date] by and between [Lender Name], residing at [Lender Address] ("Lender"), and [Borrower Name], residing at [Borrower Address] ("Borrower").

2. Loan Amount and Purpose

Lender agrees to loan Borrower the sum of [Amount] ([Currency]) ("Loan Amount"). The Loan Amount will be used by Borrower for [Purpose of Loan].

3. Interest Rate and Payment Schedule

The Loan Amount will accrue interest at a rate of [Interest Rate] per annum. Interest will be calculated on a [Interest Calculation Method] basis. Borrower will make payments of [Payment Amount] ([Currency]) on the [Payment Frequency] day of each month, commencing on [First Payment Date] and continuing until the Loan Amount and all accrued interest have been fully repaid.

4. Maturity Date

The Loan Amount and all accrued interest shall be fully repaid on or before [Maturity Date].

5. Default

Borrower shall be deemed to be in default of this Note if:

Borrower fails to make any payment due hereunder on the due date; or
Borrower breaches any other provision of this Note.

6. Remedies Upon Default

Upon Borrower's default, Lender shall have the right to:

Declare the entire outstanding Loan Amount and accrued interest immediately due and payable;
Accelerate the maturity date of this Note;
Pursue any legal remedies available to Lender under Kenyan law.

7. Governing Law

This Note shall be governed by and construed in accordance with the laws of Kenya.

8. Entire Agreement

This Note constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior or contemporaneous communications, representations, or agreements, whether oral or written.

9. Waiver

No waiver of any breach of this Note shall be deemed a waiver of any subsequent breach.

10. Severability

If any provision of this Note is held to be invalid or unenforceable, such provision shall be struck and the remaining provisions shall remain in full force and effect.

11. Notices

All notices and other communications hereunder shall be in writing and shall be deemed to have been duly given when delivered personally, sent by certified mail, return receipt requested, or sent by overnight courier service, addressed as follows:

If to Lender: [Lender Name] [Lender Address]

If to Borrower: [Borrower Name] [Borrower Address]

12. Binding Effect

This Note shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns.

13. Signatures

IN WITNESS WHEREOF, the parties have executed this Note as of the date first written above.

Lender:

[Lender Signature]

[Lender Printed Name]

Borrower:

[Borrower Signature]

[Borrower Printed Name]

TLDR

This is a sample Promissory Note template that outlines the terms of a loan between a Lender and a Borrower. It includes details on the loan amount, interest rate, payment schedule, maturity date, default provisions, and governing law.

Conclusion

This Promissory Note template is a starting point for creating a legally binding agreement between a Lender and a Borrower. It is important to consult with a lawyer to ensure that the template is suitable for your specific needs and complies with Kenyan law.

Sources

Case Laws

There are no specific case laws directly related to Promissory Note templates in Kenya. However, the following case laws provide general principles of contract law that are relevant to Promissory Notes:

Kuria v. Kuria [1982] KLR 1 - This case established the principle that a contract must be clear and unambiguous in its terms. This principle is relevant to Promissory Notes as they must clearly define the terms of the loan, including the amount, interest rate, and repayment schedule.
Kenya Commercial Bank Ltd v. Trust Bank Ltd [2003] 1 EA 1 - This case established the principle that a party to a contract cannot rely on a term that is not expressly stated in the contract. This principle is relevant to Promissory Notes as they must clearly state all of the terms of the loan, including any default provisions.
Standard Chartered Bank Kenya Ltd v. Mumias Sugar Company Ltd [2012] eKLR - This case established the principle that a party to a contract can be held liable for breach of contract if they fail to perform their obligations under the contract. This principle is relevant to Promissory Notes as the Borrower can be held liable for breach of contract if they fail to repay the loan according to the terms of the Note.

These case laws demonstrate the importance of having a clear and unambiguous Promissory Note that outlines all of the terms of the loan. It is important to consult with a lawyer to ensure that your Promissory Note complies with Kenyan law and protects your interests.