Is a promissory note with no signature date defective?

Short answer: A promissory note must be signed by the borrower. However, an undated but signed promissory note is valid and effective because the signature date is not an essential element of a promissory note. It is highly recommended that the promissory note is dated when signed for purposes of clarity, however it is not an essential element.

Analysis

To answer this question, let us examine the essential elements of a promissory note.

1. It must be in writing; cannot be verbal.

2. It must be a promise to pay money.

3. It must be payable on demand or on a specific date.

4. It must be unconditional once the terms are established and the note is signed.

5.It must state the specific amount owed.

6. It must be transferable.

7. It must be signed by the borrower.

As shown above, the essential elements of a promissory note do not require the signature date. This begs the question. How is the effective date determined? When a contract is not dated, courts generally draw evidence from the surrounding facts to determine when the contract went into effect. In Kirkland v. Knox, 230 F. 806, 808 (4th Cir. 1916), the court determined that an undated contract of sale of “standing timber” was executed around the date the deceased owner’s property was probated. The court drew evidence from all the surrounding circumstance in the case to determine when the contract went into effect. The contract was still valid even though it was not dated. Such a dispute would have been easily resolved if the contract was signed and dated.