Promise to pay
A promise to pay is a written commitment by a debtor to pay a set amount to a creditor by a set date or on a schedule. It can be a clause in a contract, a short letter or agreement, or the core of a promissory note.
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Sample Promise to pay clauses
On 1/15/2017 borrower made a promise to pay in the amount of $1,623.95.
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Sphere 3D Corp (ANY)PROMISE TO PAY. For value received, I promise to pay you or your order, at your address, or at such other location as you may designate, amounts advanced from time to time under the terms of the Loan up to the maximum outstanding principal balance of $500,000.00 (Principal), plus interest from the date of disbursement, on the unpaid outstanding Principal balance until the Loan is paid in full and you have no further obligations to make advances to me under the Loan.
“PROMISE TO PAY. IMAC Holdings, Inc. (“Borrower”) promises to pay to Edward S. Bredniak (“Lender”), or his order, in lawful money of the United States of America, the amount of One Million Seven Hundred Fifty Thousand & 00/100 Dollars ($1,750,000.00) or so much as may be outstanding, together with interest on the unpaid outstanding principal balance of each advance. Interest shall be calculated from the date of each advance until repayment of each advance.”
You promise to pay to us interest on any amount which you must pay under this document (including interest) which is unpaid and which is not otherwise incurring interest. That interest will be calculated as from the day that amount falls due and on the daily balance of the amount unpaid. This applies even if we have a judgment for the amount.
You promise to pay all stamp duty and other government duties and charges on this document and any security for this document and payments and receipts under them. If we pay any of those amounts, you must reimburse us.
Taxes If you are required to deduct any tax from any payment then:
- you promise to pay that amount to the appropriate authority and promptly give to us evidence of payment; and
- the amount payable to us is increased so that (after deducting tax and paying any taxes on the increased amount) we receive the same amount we would have received had no deduction been made.
You promise to pay any goods and services tax or other tax payable on any amount which you have to pay to us. Where you have to indemnify us against an amount or reimburse us for any amount, that amount will be inclusive of any goods and services tax or other tax payable by us.
The Borrowers jointly and severally promise to pay all costs and expenses, including reasonable attorneys’ fees, all as provided in the Credit Agreement, incurred in the collection and enforcement of this Note. Time is of the essence with respect to the terms of this Note.
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Com2000, Inc.The undersigned hereby agreed to extend the maturity dates and term of the loans to:
Promise to Pay: January 1, 2023. Replacing:
Promise to Pay: On the earliest of January 1 or within 1 month from from the date that the Borrower will go public (the SEC declares the Com2000 S-1 registration statement effective).
The Borrowers hereby promise to pay interest at the Default Rate, on demand, on the Loan and other Obligations as provided in the Credit Agreement.
The undersigned further jointly and severally promise to pay interest on the unpaid principal amount of each Advance under the Term Loan (2022) from the date of such loan until the Term Loan (2022) is paid in full, payable at the rate(s) and at the time(s) set forth in the Credit Agreement. Payments of both principal and interest are to be made in lawful money of the United States and in immediately available funds.
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FirstKey Mortgage, LLCBorrower made a promise to pay $1141.36 via cashiers check.
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PUTNAM FUNDS TRUSTBecause fixed-income investments generally represent a promise to pay principal and interest by an issuer, and not an ownership interest, and may involve complex structures, ESG-related investment considerations may have a more limited impact on risk and return (or may have an impact over a different investment time horizon) relative to other asset classes, and this may be particularly true for shorter-term investments.
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Cool Holdings, Inc.Promise to Pay. The Obligors hereby jointly and severally promise to pay to the order of Payee $1,250,000 (the “Principal Amount”), in lawful money of the United States of America (the “Loan”), as hereinafter provided in this Note.
PROMISE TO PAY. LF3 Cedar Rapids, LLC; and LF3 Cedar Rapids TRS, LLC (“Borrower”) jointly and severally promise to pay to Western State Bank (“Lender”), or order, in lawful money of the United States of America, the principal amount of Five Million Eight Hundred Fifty-eight Thousand One Hundred Thirty-four & 26/100 Dollars ($5,858,134.26) or so much as may be outstanding, together with interest on the unpaid outstanding principal balance of each advance. Interest shall be calculated from the date of each advance until repayment of each advance.
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U.S. WELL SERVICES, INC.PROMISE TO PAY. U.S. WELL SERVICES, INC., U.S. WELL SERVICES, LLC, and USWS HOLDINGS LLC ( collectively “Borrower” and each individually a “Borrower”) promise to pay to the order of Greater Nevada Credit Union (“Lender”), in lawful money of the United States of America the sum of Dollars (U.S. $ ), or such other or lesser amounts as may be reflected from time to time on Lender’s books and records as evidencing the aggregate unpaid principal balance of loan advances made to Borrower on a multiple advance basis as provided herein, together with simple interest at the rate or rates provided herein in the “PAYMENT” paragraph, with interest being assessed on the unpaid principal balance of this Note as outstanding from time to time, commencing on November 12, 2020, and continuing until this Note is paid in full.
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5.11 ABR CORP.The undersigned further promise to pay, jointly and severally, interest on the unpaid principal amount of each Loan from the date of such Loan until such Loan is Paid in Full, payable at the rate(s) and at the time(s) set forth in the Credit Agreement. Payments of both principal and interest are to be made in lawful money of the United States of America.
What is a promise to pay?
A promise to pay is a written commitment by one party to pay a set amount to another by a set date or on a schedule. It names who pays, who gets paid, how much, when and how. It shows up as a clause in a contract, as a short promise to pay letter or agreement, and as the core sentence of every promissory note: “For value received, the Borrower promises to pay to the Lender…”
Promise to pay letter vs promise to pay agreement vs promissory note
| Document | What it is | Typical use |
|---|---|---|
| Promise to pay clause | One section inside a larger contract | Loans, sales contracts, financing |
| Promise to pay letter | A short letter from the debtor confirming the debt and a payment date | Overdue invoices, collections, rent arrears |
| Promise to pay agreement | A signed agreement on a payment plan for an existing debt | Settling a debt in installments |
| Promissory note | A formal, signed promise to pay a fixed sum, often with interest | Loans between companies or individuals |
A promissory note that is an unconditional promise to pay a fixed amount can be a negotiable instrument under US law (UCC Article 3), which means it can be transferred to someone else who then collects the money. A promise to pay letter usually cannot.
What to include in a promise to pay
- The parties: who owes and who is owed.
- The amount, and what it is for (an invoice, a loan, unpaid rent).
- When and how: one payment date or an installment schedule, and the payment method.
- Interest or late fees, if any, such as a late payment penalty.
- What happens on default, for example that the full balance becomes due at once.
- Signatures and the date.
Promise to pay clause example
Sample clause: Promise to pay
Add this clause to a contract, send it and get it signed in fynk.
Use it in fynk for freeIs a promise to pay legally binding?
Yes, if it is part of an agreement with consideration, such as goods delivered, money lent or a debt that already exists, and the amount and terms are clear. A written promise to pay an existing debt can also matter for limitation periods: in many US states, a signed acknowledgment of a debt can restart the time a creditor has to sue. A vague promise (“I’ll pay you back soon”) is much harder to enforce.
Payment promises are only useful if someone watches the dates. In fynk you can sign the promise to pay electronically and set deadline reminders for each installment, so a missed payment shows up the day it is due.
Which contracts include a promise to pay?
Promissory notes, loan agreements, installment and financing contracts, and debt settlement agreements. These free templates already contain a promise to pay:
Free templates with a promise to pay
Unsecured promissory note templateOpens with a promise to pay section in which the maker promises to pay the holder or its assignee.
Use the free template
Master promissory note templateThe borrower promises to pay the lender at the times and in the manner the note sets out.
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Related clauses
- Payment terms and conditions Payment terms and conditions outline the specifics of how and when a party will be compensated for goods or services provided. They typically include details on the payment method, due dates, any interest or penalties for late payments, and any discounts available for early payments.
- Late payment penalty A Late Payment Penalty clause stipulates that if a payment is not made by its due date, the party responsible for the payment will incur an additional fee or penalty. This clause incentivizes timely payments and compensates the payee for any inconvenience or financial impact caused by the delay.
- Default interest rate A default interest rate clause stipulates the interest rate that will be applied to overdue payments in a contract. This rate serves as a financial penalty, incentivizing timely payments and compensating the party owed for any delay.
- Cross default A cross default clause is a provision in a loan or credit agreement that triggers a default if the borrower defaults on another obligation, such as a different loan or financial agreement. This clause aims to protect lenders by ensuring they can take action if the borrower is experiencing broader financial difficulties.
Frequently asked questions
It means a person or company has committed, usually in writing, to pay a specific amount to someone else. In a promissory note, the phrase 'promises to pay' is the sentence that creates the debt.
Every promissory note contains a promise to pay, but not every promise to pay is a promissory note. A note is a formal, signed instrument for a fixed sum; a promise to pay can also be a clause in a contract or a short letter about an existing debt.
The creditor can claim the amount, plus any interest or fees the agreement allows. If the agreement has an acceleration clause, the whole remaining balance can become due at once.
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