How Do You Write A Contract To Borrow Money?
In some cases, an oral contract between a person who is borrowing money and a lender may not be legally binding. To protect all parties, you should draw up a contract if you plan to borrow money from a friend or family member. A contract will also help prevent any misunderstandings about the loan terms that may come up down the road. Step 1 Place both names and a date at the start of the contract. Full names and contact information should be listed on the loan contract. Step 2 Define the type of contract. If it is a loan and not a gift to the borrower, then that must be stated within the body of the contract in order to avoid confusion. The loan amount must be included as well. If there is not a set amount, then a maximum loan should be printed on the contract. Step 3 Include any interest that is going to be applied to the loan. If you and the lender agreed on a particular interest amount or percentage rate, that should be put within the section of the contract that deals with the term
