Publication date: 28.05.2024
Loan agreement or receipt: nuances that everyone should know about
Introduction
Financial relations between individuals often take the form of a loan. People often use a receipt or a loan agreement to record the conditions and evidence of the transfer of funds. Both of these documents have their own characteristics and legal consequences. In this article, we will consider the main nuances that everyone should know when concluding a loan agreement or drawing up a receipt.
Main part
A loan agreement
Definition and form
A loan agreement is an agreement under which one party (the lender) transfers to another party (the borrower) ownership of money or other things determined by generic features, and the borrower undertakes to return the same amount of money or an equal number of things of the same kind and quality.
According to Article 1046 of the Civil Code of Ukraine, the loan agreement is concluded in writing if its amount exceeds 10 tax-free minimum incomes of citizens, or if the lender is a legal entity. You may be interested in the following articles: lawyer's consultation, lawyer's consultation, document analysis, legal situation analysis, written consultation, document review by a lawyer, lawyers' documents, lawyer's help online, lawyer online, legal opinion, lawyer's legal opinion, lawyer online.
Mandatory conditions
The loan agreement must contain the following mandatory conditions:
Parties to the contract: full names, passport data, registration numbers of taxpayer identification cards (TIN) of the parties.
The subject of the contract: the amount of money or the number of things to be loaned.
Term and order of repayment: the specific term of repayment of the loan and the method of repayment of funds or things.
Interest for the use of the loan: if the loan is paid, it is necessary to indicate the amount of interest, the order and terms of their payment.
Signatures of the Parties.
Advantages of the loan agreement
Clear regulation: all terms of the loan are clearly spelled out in the document, which reduces the risk of misunderstandings.
The possibility of recovery through court: the loan agreement is a full proof in court in case of non-repayment of the loan.
Receipt
Definition and form
A receipt is a document in which the fact of the transfer of money or things on loan is noted. The receipt is confirmation of the conclusion of the loan agreement and can be used as evidence in court.
The receipt must be drawn up by the borrower himself and contain the following mandatory details:
Date and place of assembly.
Full names, passport data, TIN of the parties.
Amount of money or number of things transferred.
Return period.
Borrower's signature.
Advantages of the receipt
Ease of registration: does not require complex legal wording.
Speed: can be folded on the spot when transferring money or things.
Disadvantages and risks
A loan agreement
Excessive formalization: the need to spell out all the terms in detail can be difficult for non-professionals.
Preparation Time: Requires more preparation time compared to receipt.
Receipt
Forgery: A receipt is easier to forge than a contract signed by both parties.
Insufficient detail of the terms: Failure to describe the terms in detail can lead to misunderstandings and disputes.
Conclusion
The loan agreement and the receipt are important documents that help in fixing the terms of the loan of funds or things between the parties. Each of these documents has its advantages and disadvantages, which should be taken into account when using them. The loan agreement provides a higher level of legal protection and clear regulation of the terms, while the receipt is a simpler and faster way of recording the agreement, but may have a lower level of trust due to the possibility of forgery. The choice between these two documents depends on the specific circumstances and requirements of the parties, but regardless, it is important to comply with the requirements
