1. How many years is the IOU valid?
When writing IOUs, you'd better agree on the repayment date, so as to avoid any disputes in the future and be embarrassed to ask for money back from the standpoint of friends or relatives.
If the repayment date is agreed, the other party may be sued for repayment within three years after the repayment date.
The time limit of your so-called IOUs is the statute of limitations that you are afraid of IOUs. The statute of limitations for IOUs shall be counted from the date when IOUs are issued. If you claim rights against the debtor within these three years, it will have the effect of interruption of the statute of limitations.
2. Is an IOU the same as an IOU?
According to the law, the limitation period of action for arrears without repayment date is 3 years. However, the law also stipulates that the statute of limitations for IOUs without repayment date is 20 years. IOUs and IOUs are also different in legal sense.
The IOU is the proof of the loan contract relationship and the basis of the loan facts issued by the borrower to the lender when the lender delivers the loan to the borrower. The IOU shall indicate the name of the lender, the loan amount (in words and figures), the borrower's signature or seal, and the date of issuance of the IOU. If the loan bears interest, the repayment method, interest calculation method and liability for breach of contract shall also be indicated.
According to the law, the statute of limitations for IOUs is three years, counting from the date of repayment period indicated on IOUs. If the lender fails to claim the rights to the people's court for more than three years, the people's court will no longer protect it. If the repayment date is not specified, the lender may demand repayment from the borrower at any time, and the limitation of action shall be calculated from the day after the lender claims the right. However, if the lender fails to claim rights within 20 years after the borrower issues the loan, the limitation of action will not start.
IOU is a kind of creditor's rights relationship arising from some kind of economic settlement in economic exchanges between the two parties, such as the arrears formed by buying and selling, damages and labor services. And the settlement basis issued by the debtor to the creditor. The IOU must specify the name of the creditor, the amount owed (in words and figures), the time of arrears, and finally the date of signature or seal of the debtor.
According to the law, the statutory limitation of action for IOUs is 3 years. If the debt indicates the date of settlement, the limitation of action shall be counted from the date of settlement indicated. If the repayment date is not specified in the IOU, the limitation of action shall be counted from the day after the debtor issues the IOU.
To sum up, IOUs are generally valid for three years. From a legal point of view, it is better to write IOUs than IOUs when borrowing money. Of course, there are many details in writing IOUs that can't be ignored, otherwise it will easily lead to disputes. Therefore, in order to avoid legal risks, I suggest that when you are preparing to write IOUs, you'd better consult a professional lawyer on the website and let the lawyer provide you with effective help.