Personal Loan Agreements between friends

Ok. How about this: Agreement Between Friends?



AGREEMENT BETWEEN FRIENDS
THIS AGREEMENT dated this 8th day of October, 2013

BETWEEN:
XXXX

(the "lender")
OF THE FIRST PART
AND
XXXX

(the "Borrower")
OF THE SECOND PART
IN CONSIDERATION OF the Lender loaning certain monies (the "Loan") to the Borrower, and the Borrower repaying the Loan to the Lender, both parties agree to keep, perform and fulfil the promises and conditions set out in this Agreement:
Loan Amount
1. The Lender promises to loan £XXXX GBP to the Borrower and the Borrower promises to repay this principal amount to the Lender, at such address as may be provided in writing.
2. Payment
2. This Loan will be repaid in full eighteen (18) months from the execution of this Loan, however a review of this agreement will be carried out on or before the 7th April, 2014.
Default
3. Notwithstanding anything to the contrary in this Agreement, if the Borrower defaults in the performance of any obligation under this Agreement, then the Lender may declare the principal amount owing under this Agreement at that time to be immediately due and payable.
Governing Law
4. This Agreement will be construed in accordance with and governed by the laws of Country of England.
Costs
5. All costs, expenses and expenditures including, without limitation, the complete legal costs incurred by enforcing this Agreement as a result of any default by the Borrower, will be added to the principal then outstanding and will immediately be paid by the Borrower.
Binding Effect
6. This Agreement will pass to the benefit of and be binding upon the respective heirs, executors, administrators, successors and permitted assigns of the Borrower and Lender. The Borrower waives presentment for payment, notice of non-payment, protest, and notice of protest.
Amendments
7. This Agreement may only be amended or modified by a written instrument executed by both the Borrower and the Lender.
Severability
8. The clauses and paragraphs contained in this Agreement are intended to be read and construed independently of each other. If any term, covenant, condition or provision of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, it is the parties' intent that such provision be reduced in scope by the court only to the extent deemed necessary by that court to render the provision reasonable and enforceable and the remainder of the provisions of this Agreement will in no way be affected, impaired or invalidated as a result.
General Provisions
9. Headings are inserted for the convenience of the parties only and are not to be considered when interpreting this Agreement. Words in the singular mean and include the plural and vice versa. Words in the masculine mean and include the feminine and vice versa.
Entire Agreement
10. This Agreement constitutes the entire agreement between the parties and there are no further items or provisions, either oral or otherwise.
IN WITNESS WHEREOF, the parties have duly affixed their signatures on this 8th day of October, 2013.
SIGNED, SEALED AND DELIVERED
before me, this 8th day of October, 2013

_____________________________
XXXX


SIGNED, SEALED AND DELIVEREDbefore me, this 8th day of October, 2013
XXXX
per: ______________(SEAL)

Copyright 2002-2013, LegalComplete.co.uk

bargainbetty wrote: »

You're missing the point. Sign what you like with them, if they don't have the money, you won't get the money without a long and protracted legal battle. You would have to get a court order to put a claim onto their home, and it would be behind any mortgage debt, so forget that too. I say that because if they cannot obtain the finance they need by remortgaging their property, their personal debts are already such that there would be nothing left for you. If they tell you that isn't the problem, ask them why they aren't doing it themselves?

If they cannot get funding, there is a reason. Have you performed a proper review of the business? Seen the order book, looked at cashflow and projected revenues? If you can see a viable business, then so can a formal lender. Banks are lending, but viable business plans and investment are necessary.

I have a friend I've known for 30 years. She just came back from five weeks touring Europe with her family. Lots of stories about vineyards and fine cheese, and racks of smoked sausages etc. She has owed me hundreds for years now. I'll never see it, and I'll never lend her another penny.

Good luck

I genuinely thank everyone for their concern in the worst case scenario. I have absolutely no doubt that the loan will be repaid. This is not a typical situation and I am 99% sure I will not be back on this site in a year's time, crying help!

To be honest, in the past, we have leant each other money back and forth with verbal agreements and no problems (maybe I should have said this at the beginning) I just got shaken by the nightmares I read about on the other thread and as this is a large sum for me, I wanted to try and follow advice given on the other thread to give me extra peace of mind.

StuC75 wrote: »

At least in your case the investment had some form of security - the house - that you sell on should it have gone wrong.. Here it is investing in a company - what is being put up as security..

The OP would be best placed to have some kind of agreement drawn up making him a shareholder in the company..

As it stands such an agreement would fall so far down the list of what could be claimed - even if were to push for some form of charge on the property.. (behind bank & other lenders by the sound of it)..

In short OP only be prepared to make the investment if you are happy to never see it again; that way whatever you do get back will always be a bonus..

Yes, fair enough StuC75. We were going to try and value the business and I'd've had a stake in it - it's a great little cottage business - but it's just attained another concession in another large chain of stores - they need cash to expand. Bank has turned them down once but are reviewing again next week. I think the bank are being way too cautious....they do not see the potential I see..