Agreement Letter Money Lending

Agreements may be written in the presence of legal staff or tailor-made by the parties concerned. Most credit institutions have their own credit agreements. Families engaged in commercial activities and who attach importance to legal certainty also have their own forms. It is usually not an act of distrust when forms are obtained, but it serves for security and formality. Many people view signature forms as an act of defiance, especially for private credit, but this is usually not the case. Forms are only important for legal certainty and the retention of records. However, in the case of institutional credits, this is exclusively a security measure. CONSIDERING that the borrower wishes to borrow a fixed amount of money; and depending on the amount of money borrowed, the lender may decide to have authorized the agreement in the presence of a notary. This is recommended when the total amount, plus interest, is greater than the maximum rate allowed for the small claims court in the parties` jurisdiction (normally $5,000 or $10,000). Depending on the loan selected, a legal contract must be established with the terms of the loan agreement, including: There are other cases when a loan agreement may be required as follows: borrower – The person or company that receives money from the lender, who must then repay the money according to the terms of the loan agreement. The borrower should read the entire agreement. The borrower is responsible for understanding what is being read.

If the document is confused, the borrower must question the document and see more clearly before signing. .