I Owe You

IOU is the abbreviation used for ‘I owe you.’ It generally refers to any document that outlines and provides the information on debt amount between two parties. It is considered one of the important documents in the financial agreement.

IOU outlines the relationship of debt between two entities, which are between people or businesses. Regardless of its significance, it is not considered a legal binding. This serves more like a reminder and does have contractual binding value.