Breach-of-Promissory-NoteOur Charleston commercial litigation attorney frequently handle breach of promissory note and other contract disputes for our clients. A promissory note is a legally binding contract which indicates the obligation to pay a set amount of money. The note contains a promise by a debtor to pay a creditor a specified sum within a certain period of time. An enforceable promissory note will contain identical elements as any valid contract: an offer, an acceptance, and consideration (bargained-for exchange).

A promissory note can be simple representation of an agreement, or it can be a sophisticated and complex document covering multiple issues and including added provisions of a contract, including the right to recourse in the event of default. Usually, a promissory note will contain the terms relating to the indebtedness by the issuer or maker to the note’s payee, such as the amount, interest rate, maturity date and date and place of issuance. A breach of promissory note, a legally binding instrument, can be remedied if one of the parties fails to uphold their side of the bargain. Legal remedies for breach of promissory note will include repossession of the secured assets in question.

A breach of promissory note, which is a legally binding contract, occurs when a party to the promissory note does not uphold their end of the bargain. Potential legal remedies for a breach of promissory note include repossession of the secured assets in question.
The elements of a breach of promissory note are the same as those for a breach of contract:
  • The existence of a valid and enforceable note;
  • Performance by the plaintiff;
  • Breach of note (failure to pay according to the terms of the note) by the defendant; and
  • Resultant injury to the plaintiff.

Keep in mind that a statute of limitations will apply to a breach of promissory note claim. The statute of limitations typically begins to run on the date the note was breached.

Contact our Charleston commercial litigation law firm at 843-564-5115, or by email, to consult with one of our Charleston breach of contract attorneys to discuss your claim.