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Promissory Note Release Template for England and Wales

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Key Requirements PROMPT example:

Promissory Note Release Template

I need a Promissory Note Release Template to document the full discharge of a £50,000 business loan that will be paid off by March 2025, where I am the note holder releasing a small business owner from their obligations.

Document background
The Promissory Note Release Template is essential when parties wish to formally document the discharge of obligations under a promissory note in England and Wales. It's commonly used when a debt has been fully paid, partially satisfied, or forgiven. The document provides legal certainty by clearly defining the terms of release, protecting both the note holder and maker from future claims. This template ensures compliance with the Bills of Exchange Act 1882 and relevant contract law principles, while providing a clear audit trail of the debt's discharge.
Suggested Sections

1. Identification of Original Promissory Note: Details of the original note including date, parties, amount, and any other identifying information

2. Declaration of Release: Clear and unambiguous statement releasing the maker from their obligations under the promissory note

3. Consideration Statement: Statement detailing the consideration provided for the release, if any

4. Effective Date: Specification of when the release takes effect

5. Execution: Signature blocks for all relevant parties with date fields

Optional Sections

1. Partial Release Statement: Section specifying terms when only a portion of the obligation is being released

2. Conditions Precedent: Section detailing any conditions that must be met before the release becomes effective

3. Reservation of Rights: Section preserving rights against other parties or in relation to other obligations

Suggested Schedules

1. Schedule 1 - Original Promissory Note: Copy of the original promissory note being released

2. Schedule 2 - Payment Schedule: Details of any payment plan or arrangements if the release is contingent on specific payments

Authors

Alex Denne

Head of Growth (Open Source Law) @ ºìÐÓÖ±²¥ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions




















Clauses




















Industries

Law of Property Act 1925: Primary legislation governing discharge of obligations related to property. Key consideration for releasing property-related promissory notes.

Bills of Exchange Act 1882: Core legislation governing promissory notes in England and Wales, including provisions for discharge and release of liability.

Limitation Act 1980: Sets statutory time limits for enforcing promissory notes and contains provisions regarding acknowledgment and part payment.

Contract Law Principles: Common law principles including doctrine of consideration, requirements for valid release, and principles of accord and satisfaction.

Consumer Credit Act 1974: Relevant when the promissory note involves consumer credit arrangements or consumer protection matters.

Financial Services and Markets Act 2000: Applicable when the promissory note involves regulated financial activities or financial services.

Statute of Frauds 1677: Historical legislation still relevant today, particularly regarding requirements for written evidence of release.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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