Legal Question in Wills and Trusts in New Jersey
Legal Payment Terms for Promissory Notes
Six years ago, I received a promissory note from my brother
for $40,000 with a promise to pay me this amount in full within 6 months of my mother's death. This amount represents my real estate inheritance interest in mom's house which she transferred over completely to my brother,
at the same time he issued me this promissory note.
One lawyer tells me that a promissory note cannot be conditional, and must contain a ''date certain'' for payment. Since mine clearly is conditional (condition is my mother's death),and does not contain a certain date (since no one knows when mom will die) that it is non-legally binding, and resorts to a demand note payable immediately upon my demand.
Another lawyer tells me that the promissory note IS legally binding and is not a demand note. She also maintains that ''6 months within mom's death'' is a ''definite time'' because the time frame for payment is readily ascertainable (mom's death). She also feels that a condition can legally be attached to the payment terms.
Who is right? Is the current promissory note legally binding, or is it a demand note? Your help is deeply needed and appreciated.
1 Answer from Attorneys
Re: Legal Payment Terms for Promissory Notes
More information and an examination of the note iteself is required to assess the question properly. You have already consulted two lawyers and are now presenting it as a case to a judge. Since a large sum of money is involved I suggest you immediatly retain an attorney who may help fashion a solution acceptable to all involved. something like a recorded lien (possibly a mortgage with a specific note). By the way, interest income may be attributable to a demand note even if none is indicated. You have may other problems with this particular note. If you wish you can call me to schedule an appointment to address this problem at 973-731-5110.
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