vanity

Does anyone know if promissory notes in Canada need to be:

1. Notarized
2. Witnessed

We did one within the family, but am now worried it may have not been the right procedure.

Anyone know please?

DandNHill

If a verbal agreement between two people is legally binding then surely that would be too?
From experience whether it's binding or not isn't even the issue... what lengths would you go to to recover the debt from a family member? You can go to small claims and get the debt awarded in your favor but how will you enforce it?

plasticcanuck

Promissory notes do not require notarization.

Almost Canadian

What Province are you in and what were you trying to achieve?

vanity

Thank you, all.

Almost Canadian - BC and a loan agreement.

Aviator

It can be, depends how it is put together. An offer and acceptance is the basis of a binding contract. Always easier to enforce if in dispute if there is an independent witness.

Almost Canadian

OK. Maybe I should have been more specific.

A contract can, as others have said, be oral. An oral one is just as binding as a written one. Normally, it is simply easier to ascertain the terms of a written one, when compared to an oral one.

So, you lent some money to a family member and they executed a promissory note. One assumes that the terms of the promissory note were all the terms agreed upon and that they are unambiguous. If that is the case you have a written agreement that evidences the terms agreed upon.

What were you attempting to "add" by referring to the document as a promissory note as opposed, for example, to simply calling it a "contract"?

For example, in Alberta, guarantor documents need to be executed in a certain way.

pacepeter

I suppose it's down to how much it costs to take it to court and if that person try's to contest it
If it's witnessed can not do much about it

Aviator

It would be about whether one can prove the terms of the contract. A document that shows a transfer of funds (bank statement, cancelled cheque) can demonstrate a transaction took place, it is proving terms that becomes more challenging.

As far as costs, it is how cost effective. We use small claims for any debt over $500 up to $25k. Cheap and easy to do oneself. Supreme becomes more of an issue, as this requires a lawyer. With proof of debt, the decision is more about the likelihood of collecting if one obtains a judgment. If the chances are good, it is worth the cost.