What does IOU mean?

An IOU is a written promise that you will pay back some money that you have borrowed. IOU is an abbreviation for 'I owe you'. Collins COBUILD Advanced Learner’s Dictionary. Copyright © HarperCollins Publishers

What is an 'I Owe You' (IOU)?

An “I owe you” (IOU) is a document that records the existence of a debt. It is typically considered an informal agreement and is less likely to be legally binding than a formal contract. An IOU is an informal document that records the existence of a debt that one party owes to another.

Is an IOU legally binding?

It is typically considered an informal agreement and is less likely to be legally binding than a formal contract. An IOU is an informal document that records the existence of a debt that one party owes to another. Due to an IOU’s informal nature, it is unclear whether such a document would be legally binding in a court of law.

What is an IOU & a promissory note?

An IOU ( abbreviated from the phrase " I owe you " ) is usually an informal document acknowledging debt. An IOU differs from a promissory note in that an IOU is not a negotiable instrument and does not specify repayment terms such as the time of repayment. IOUs usually specify the debtor, the amount owed, and sometimes the creditor.