In the legal and business world, understanding the difference between a contract, a promissory note, and minutes is essential for making informed decisions. Choosing the right document can protect you legally, prevent misunderstandings, and streamline processes in your business or startup.
In this article, we’ll explain what each one is, when it’s best to use them, and how Contractualis can help you manage them digitally and securely.
What is a contract and when should you use it?
A contract is an agreement between two or more parties that establishes rights and obligations. While it can be verbal, it’s much safer when written—especially when there are financial commitments or defined timelines involved.
Contracts are useful when:
- Hiring a supplier or service provider
- Selling or purchasing goods regularly
- Formalizing a labor or business relationship
- Protecting yourself legally in case of disputes
With Contractualis, you can sign digital contracts securely and with full legal validity. You can also notify other involved parties, even if they don’t sign.
What is a promissory note?
A promissory note is a document in which one party commits to paying a specific amount of money on a certain date. Unlike a contract, it doesn’t require negotiation between multiple parties. It’s a straightforward payment promise.
Use a promissory note when:
- Lending money to an employee, client, or family member
- Financing products or services
- Setting up installment plans
- Recording a formal debt
One major benefit of using digital promissory notes through platforms like Contractualis is the ability to automate the process, generate documents in seconds, and store them securely.
What are minutes and what are they used for?
Minutes are documents that provide a written record of events, decisions, or meetings. Unlike contracts or promissory notes, they don’t necessarily imply legal obligations. They serve more as informative or testimonial documents.
Common uses include:
- Partner or board meetings
- General assemblies
- Informal agreements without binding terms
- Documenting deliveries, visits, or verbal agreements
On Contractualis, you can easily generate and manage minutes, share them with involved parties, and keep your records well-organized and professional.
Contract, promissory note, or minutes: which one do you need?
Knowing which one to use and when depends on the type of relationship or event you want to document. Here’s a quick summary:
| Document | What it formalizes | Who signs it | Legal obligation? |
|---|---|---|---|
| Contract | Bilateral/multilateral obligations | All parties involved | Yes |
| Promissory Note | A payment commitment | One party | Yes |
| Minutes | Records of events or decisions | Optional | Not always |
Why use Contractualis for these documents?
At Contractualis, we simplify how businesses and professionals create, sign, and manage contracts, promissory notes, and minutes. Our platform offers:
✅ Legally valid digital signatures
✅ Automatic email notifications
✅ Secure access from any device
✅ Real-time document tracking and generation
You can also customize signature flows based on the type of document you’re sending—avoiding mistakes like missing a required signature or sending an incomplete file.
Final tips
Before choosing between a contract, promissory note, or minutes, think carefully about what you want to document. Is there a payment obligation? Is it a commercial relationship? Or do you simply want to record a decision or meeting?
Using the right document not only protects you legally, but also adds a layer of professionalism.
We also recommend reading this related article:
👉 5 types of digital contracts your business can use
For more specific cases—especially those involving large sums or formal partnerships—consider consulting a lawyer or legal advisor.
Understanding the difference between a contract, a promissory note, and minutes empowers you to make better decisions when formalizing agreements. With tools like Contractualis, you can handle all these documents easily and securely, saving time and reducing your paper use.
If you haven’t started digitizing your document signing process yet, now is the perfect time to begin.
