This facilitates the defence of the agreement in court and makes it less likely that the document will be manipulated at a later date. Each contracting party should receive a full copy of its files. Money can also create a gap between blood relationships; And even less friends. So if you lend money to a friend or pay, think about the relationship first. Because they can earn money at any time in your life, but once the friendship is ruined, it will take years to start over. Therefore, you have to deal with money issues when your friends keep your friendship aside and act as a businessman. If you don`t want to lose your friendship, establish an official loan agreement with borrowed money, interest rate, fine and payment dates. The letter must clearly state a “loan contract” in order for it to have legal value. The use of this formal mandate would also make the agreement serious. The borrower will also understand the seriousness of the agreement and will endeavour to stick to it.
Finally, ask your friend to sign the agreement and give him a copy. The signature must be attested before a notary. You can also design the agreement by specifying your full name and residence address, such as this example. Before you write the agreement, talk to your friend and ask him how he will repay the amount you are lending. This will contribute to the development of contractual terms. Start the letter by mentioning the amount borrowed. Since you borrow money from your personal account, you must use “I” and the borrower`s name. Avoid using a nickname for your friend. Check his Social Security number or driver`s license for his correct and full name.
You must also include your name in the letter at the beginning after “I.” In addition, the agreement can determine the type of penalty if the money is not repaid as agreed. In addition, it is preferable to have signed the letter to a notary, although it may require a small amount in most cases. If this is not possible, at least have the letter signed to the witnesses. It is also important that both parties have a copy of the agreement. If you have to borrow money from a friend, it is best to put aside your friendship and simply consider it as a business contract with friends and design an official money loan contract with all the details surrounding the transaction.