Legal Question in Credit and Debt Law in Alabama
Promissory note
I am in the public accounting profession. Can I purchase a promissory note that covers past and future services?
Example: I have a client that owes me $5000. He is a long time client and
I am going to continue to provide my services to him. Therefore I need to
get him to sign a promissory note to cover the $5000 and all charges in the
future.
1 Answer from Attorneys
Re: Promissory note
Well, you can continue to provide services to this client, even in the absence of a Note, and he will still legally owe you for the previous services. Continuing to provide the services will not change that. However, if you wish to provide him with a written "reminder" and get the extra security, you can have him sign an agreement acknowledging the previous amounts owed as well as amounts for future services. This could be done via a "Retainer Agreement", such as lawyers use but any type of written agreement would suffice. What is your intent in wanting to have him execute a note? Are you wanting to charge interest? You will probably want to draft something that is tailor-made for this situation and not try to use some adapted form that was originally drafted for another purpose.