Promissory Contract Template for Singapore

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Key Requirements PROMPT example:

Promissory Contract

"I need a Promissory Contract for a business loan of SGD 250,000 with monthly repayments over 36 months, starting from March 2025, with a 5% annual interest rate and security against company assets."

Document background
The Promissory Contract is widely used in Singapore for both business and personal financial arrangements. This document type is essential when parties need to formalize payment obligations with clear terms and schedules. Under Singapore law, it must include specific elements to be legally enforceable, such as the promise to pay, payment amount, schedule, and interest terms. It's particularly valuable for structured payment arrangements, loans, and business transactions where payment security is crucial.
Suggested Sections

1. Parties: Identification of promisor and promisee with full legal names and addresses

2. Background: Context and circumstances leading to the promise

3. Definitions: Key terms used in the document

4. Promise to Pay: Clear statement of the promise, including amount and payment terms

5. Payment Schedule: Detailed timeline of payments including dates and amounts

6. Interest Rate: Applicable interest rate and calculation method

Optional Sections

1. Security: Details of any collateral or security provided - use when the promise is secured by assets or guarantees

2. Early Payment Provisions: Terms for early repayment - use when early repayment is permitted

3. Default Provisions: Consequences of default - use when specific default terms are required

Suggested Schedules

1. Payment Schedule: Detailed breakdown of payment instalments

2. Security Details: Description of any security or collateral provided

3. Guarantor Information: Details of any guarantors and their obligations

Authors

Alex Denne

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

Industries

Contract Law (Application of Laws) Act: Primary legislation governing the application of contract law principles in Singapore

Civil Law Act (Cap. 43): Fundamental legislation governing civil law matters including contract formalities and requirements under Section 4

Contracts (Rights of Third Parties) Act: Legislation governing how third parties may enforce terms of a contract that benefits them

Electronic Transactions Act: Legislation governing the validity and use of electronic signatures and electronic records in contracts

Bills of Exchange Act (Cap. 23): Specific legislation governing promissory notes, including requirements for validity and negotiability

Limitation Act (Cap. 163): Legislation setting time limits for enforcement of contractual rights and obligations

Consumer Protection (Fair Trading) Act: Legislation protecting consumer interests in contractual relationships and transactions

Unfair Contract Terms Act: Legislation regulating unfair terms in contracts and limiting the extent to which liability can be excluded

Mediation Act: Legislation governing mediation procedures for dispute resolution in Singapore

Arbitration Act: Legislation governing arbitration as a means of dispute resolution in Singapore

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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