What to mention in loan agreement, for it to be binding.
Situation : I had given friendly loan for 6 month s, but the person evaded it for 2.5 yrs.now ready to give,but in installments.has given pdc of the same.But since another friends cheque bounced last month, I m insisting to have a binding agreement.
He says, simple promissory note, but I want to add ifs and buts, because, I have seen,he doesn't pay easily,keeps on postponing.
Should I make separate agreement for each month cheque?
Can I write, if fail to pay, interest will be Applied?
(Because that is the way to tighten the noose).
Should I mention about pdc cheques in agreement?
If he doesn't pay on the given date, then what action can I take?
On the given date,can I deposit the given pdc in bank? If yes, then should I mention the same in agreement?
If not, then how many days to wait for him to deposit, which he doesn't easily.
Since he will not mend easily,can I mention in agreement, if delayed, will have to pay penalty of 1% interest per month?
If I take action of one cheque,then what will happen to rest pdc's?
Should I mention that too in complaint if any?
Does the agreement stamp paper amount depend on the debt amount?
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Whatever you mention in the agreement you have to wait for years together to recover such loan. Better you take signed blank cheques and on its dishonor you may approach a criminal Court by filing cheque bounce case, it is the easiest method to recover the loans.
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