IOU'S

What is the law on IOU'S. Does the holder of an IOU have absolute rights to the property promised by the signer? What is the law on multiple IOU'S floating around, that is, the plaintiff has one IOU and the defendant crafts a dummy IOU to thwart the original. Wouldn't the plaintiff have to sign off the 1st IOU to void it.

Can forgery charges be brought against a defendant in a small claims court?

Is there a generally accepted time frame for IOU'S to be paid back? they are short-term < 1 yr? yes?

etna2 said:

What is the law on IOU'S. Does the holder of an IOU have absolute rights to the property promised by the signer? What is the law on multiple IOU'S floating around, that is, the plaintiff has one IOU and the defendant crafts a dummy IOU to thwart the original. Wouldn't the plaintiff have to sign off the 1st IOU to void it.

Can forgery charges be brought against a defendant in a small claims court?

Is there a generally accepted time frame for IOU'S to be paid back? they are short-term < 1 yr? yes?

Click to expand...

My response:

We'd like to assist you; however, you apparently didn't see that red writing up at the top of the page. Without your State name, or the name of the State where the problem happened, it would be difficult to assist you. Laws are different everywhere.

Thank you for your cooperation, and we look forward to you editing your post.

IAAL

As IAAL said, we need a lot more information to be able to try to help....

However, I will give you some GENERAL answers to your questions:

Q1) What is the law on IOU'S.
A1) Too broad. What are you asking?

Q2) Does the holder of an IOU have absolute rights to the property promised by the signer?
A2) Maybe. It depends on a lot of things. Does the debtor have absolute ownership, or are their liens on the property?
What kind of property? Also, depends on the wording of the IOU.

Q3) What is the law on multiple IOU'S floating around, that is, the plaintiff has one IOU and the defendant crafts a dummy IOU to thwart the original.
A3) Again, way to vague. What are you really asking?? Does the debtor issue the 'multiple' IOU's, or are their 'offsetting' IOU's???

Q4) Wouldn't the plaintiff have to sign off the 1st IOU to void it.
A4) Again, too vague. Are you meaning does the writer of the IOU have to sign it?? Or, does the holder have to sign off the IOU as paid to 'invalidate' it??

Q5) Can forgery charges be brought against a defendant in a small claims court?
A5) No. Forgery charges are a criminal action. However, you might be able to claim fraud and recover your damages.

Q6) Is there a generally accepted time frame for IOU'S to be paid back? they are short-term < 1 yr? yes?
A6) No. There is no statutory time limit for IOU's, just like there are no statutory time limits for other written contracts. Each contract (IOU) stands on its own. If there is no specific time for repayment, then it is open ended and without a payment term.

My further response:

An IOU is the simple name for the fancy term, "promissory note", a written acknowledgement of a debt owed by one person to another. For example, an IOU note is a promissory note issued by one person in favor of another who has the right to it at any given time. Like any contract of debt, an IOU is subject to the Statute of Limitations of the State in which it is written. This is why I needed your State name - - because if you don't act to file a lawsuit within the applicable Statute of Limitations, your IOU won't be worth the paper it's written upon.

But, apparently this matter isn't very important to you because you haven't responded with an answer, or you found your answers elsewhere.

Good luck to you.

IAAL

Further to my earlier answer:
"Q6) Is there a generally accepted time frame for IOU'S to be paid back? they are short-term < 1 yr? yes?
A6) No. There is no statutory time limit for IOU's, just like there are no statutory time limits for other written contracts. Each contract (IOU) stands on its own. If there is no specific time for repayment, then it is open ended and without a payment term."

From the original post, I assume that this IOU has NO date shown on it. If so, it is virtually unenforcable, since no court can find that the debtor would be in default due to no specific payback terms. However, if there were a date that the IOU was written, then as IAAL replied, your states statute of limitations would apply to its validity (as in all contracts or promissory notes). However, unless the IOU gave a specific payback date or schedule, I still think that it would unenforcable. Again, to answer the specific question... there is no 'generally accepted time frame for IOU's to be paid back'. In order for it to be a valid promissory note or contract there MUST be some specific payback or default shown.

TO IAAL

Excuse the dilatory response.
The IOU question is for the state of Missouri. It was signed by the debtor on his company's letterhead, dated in August of 2000, with no due date referred to. The property promised is an airline ticket anywhere.

As an aside, what are the essential elements of a valid contract?

racer – you’re right, but the OP is bouncing from pillar to post and a third thread (this is the second) doesn’t seem productive, when the answer is simple. (In the OP’s place, I’d give up in disgust before going there.)

OP – you need what is called a “novation”, and no it can’t be done under the radar. Contract rules apply. If you can prove that she did what you assert, your friend has committed multiple crimes. You’re going to have to confront her and get this situation straightened out informally, with a new and correct note, or file a criminal complaint and have her charged. Let a court order the existing promissory note rescinded. The following is a link to CA Civil Code sect 1530 - 1543, which pertains to novation and release. You have a problem, but I doubt that you’ll get more sympathy until you step up to the plate:
http://www.leginfo.ca.gov/calaw.html

(And, at the time of this posting, the whole site is down. Maybe Arnold is trying to cut the budget too fast.)