Loans and agreement?

Question

I plan to lend money to my friend so that he can buy a car, however I want to make it legal so that in case he doesn't pay I can sue him.so how is a legally binding document suposed to be? do I need to have any witnesses present and what should the words on the agreement state. I hope somebody can answer my question.I am really torn between what to do and how to do it.

Answer 1

Bad idea to lend friends money, leads to ex-friends.

My advice, insist that you are placed as the legal lien holder of the vehicle, that way if he fails to repay you can repossess.

Once he pays it off you sign over title and the car is his.

Answer 2

whilst somebody enters right into a ‘shopper credit settlement’ or ‘hire-purchase settlement’ which isn't signed on the premises of the lender or proprietor, they could have an hazard to alter their ideas, and cancel it. that's be attentive to by means of fact the ‘cooling-off era’ (cancellation provisions are set out in ss.sixty seven-seventy 3 of the 1974 Act). the standards for this are that:- * you signed it everywhere different than on the premises of the dealer or creditor; and * you reported the credit face-to-face with the dealer or creditor formerly you signed the settlement. in case you signed it on the economic institution, legally you could not cancel it i'm afraid. you could merely pay it back under the words of the own loan or pay early redemption rates as specific contained in the settlement. in spite of the undeniable fact that, maximum banks will enable you to attain this without penalty as a goodwill gesture - it incredibly isn't any longer of their pursuits so you might have a private loan you dont like or to sense which you have been wronged by using them.

Answer 3

1) You're about to lose a friend.
2) Google "promissary note" and see if that helps.
3) uslegalforms.com will have what you need.
4) Did I mention that you're about to lose a friend?