In financial jargon, saying IOU or “I Owe You” means that one party owes the other money. IOUs are declarations that serve as pledges that a portion will pay back debt by a specified due date, to be more precise.
IOUs are unique in that they frequently lack legal force. In some cases, a verbal agreement may be used in place of a written contract. However, parties may decide to add extra information to the IOU so that it is easier to enforce in the event of problems. IOUs are, in any event, far less formal than other types of agreements, such as promissory notes and contracts.