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In this episode, Michelle discusses the importance of a promissory note, clarifying that it is a document that outlines a loan agreement. She explains that it is a simple piece of paper, either typed or handwritten, similar to an IOU. Michelle emphasizes the importance of having a promissory note in writing, especially when there is a significant amount borrowed, in order to enforce the obligation. The statute of frauds is mentioned as a requirement for certain agreements to be in writing for enforcement.
