Loan agreements

[For England]

I've been staying in LA for 3 months.

I have a "friend" staying with me, who doesn’t earn any money, so I've been helping him out financially. The sum of money is climbing steadily and now is at £1000+.

His behaviour has been worrying me, in the sense that he's crazy; he mentions things like going on holiday again with his mates when he gets back to England. This obviously knocks my confidence in him paying back the money in full.

So my sister suggested writing a contract, so that in the event he doesn't pay back I can take him to a small claims court.

Does anyone know where I can find a free loan template for such a scenario? I've been searching all day to no avail.

Cheers!

[seniorjudge]

Originally Posted by For England

I've been staying in LA for 3 months.

I have a "friend" staying with me, who doesn’t earn any money, so I've been helping him out financially. The sum of money is climbing steadily and now is at £1000+.

His behaviour has been worrying me, in the sense that he's crazy; he mentions things like going on holiday again with his mates when he gets back to England. This obviously knocks my confidence in him paying back the money in full.

So my sister suggested writing a contract, so that in the event he doesn't pay back I can take him to a small claims court.

Does anyone know where I can find a free loan template for such a scenario? I've been searching all day to no avail.

Cheers!

I promise to pay to the order of [your name] the amount of [amount] at the interest rate of [interest rate].

[your buddy's signature]

[For England]

Cheers!

So thats all there is to it?

Along with counter signatures?

[Chien]

SJ's will get the job done, but you might want to add some terms such as an "on or before" date, after which the loan is in default. Or payment terms, if you're going to take installments.

Given the amount that has been extended, you're not beyond Small Claims jurisdiction, but you could get there. In that instance, you might want to provide for recovery of attorneys' fees, if it litigated.

Don't know where you've been searching, but Google on "promissory note+sample" and you'll find some examples from which you can cut and paste.

Also, most major stationery stores sell packaged forms that could even be customized for your state.

[For England]

Cheers,

This contract, if required to be put to official use will be used in England. Fortunately filing in a "small court case" is easy and cheap.

Thanks for educating me on the terminology too. Prior to this I knew nothing.