Full Form of IOU:
I Owe You
IOU Full Form is I Owe You. IOU is an informal note or agreement made between the creditor and the debtor. It is not acknowledged on the basis of real-time validity. But, creditors use such kind of notes when the borrowing amount is small or not too huge. IOU informally allows the debtor to acknowledge his borrowed money. This informal nature of such notes raises the question of uncertainty. IOU is not usually taken as a binding contract.
IOU is constructed and designed on the basis of free reign. An IOU usually includes the name of the borrower, the name of the creditor, date of borrowing the money, interest rate (if any), and payment types. Sometimes, it also includes signatures of the creditor and the debtor. It is not necessary that the borrowed amount will have a monetary value. Sometimes, repayment terms are based on products and properties.
But there are no legal remedies to assure the certainty of an IOU. It does not include strict implications or regulations like a formal bond or a promissory note. This uncertainty does not allow IOU to be a negotiable instrument. In the month of July 2009 the state of California used a type of IOUs issued to state employees, local governing authorities, taxpayers eligible for a refund in tax, many private business entities. They used these Registered Warrants as they were not able to redeem usually used informal warrants.
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