Ravikanth Andhavarapu (self employed) 09 July 2012

Information on drafting an agreement

Hello,

I have loaned an amount of Rs. 50000 to my friend at 12% interest. (It works out better for him when compared to getting a loan from bank). What kind of agreement should I draw to make sure it is safe and legal and how should I do it?

I have a signed letter head stating the same. Would that suffice?

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4 Replies

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 ) 09 July 2012

Just signed letter is not sufficient. Better to obtain a promissory note or agreement deed on a stamp paper with notary.Then only the documents are valid under the eye of the law.

Ravikanth Andhavarapu (self employed) 09 July 2012

Hello Mr. Ramachary,

Thank you for taking the time to reply. can you please tell me the following?

I took a small course in Corporate law in college( I was an engineering student from IIT madras). The lecturer was a lawyer from High court in Chennai. He taught us that any agreement signed on a piece of paper with the consent of both the persons is a valid agreement. Am I missing something? This is causing a little confusion. can you help?

regards,
Ravikanth