A loan agreement is a contract governing the exchange of money from one party to another with the agreement that the money will be returned. A loan agreement has specific details about the interest rate, repayment period, collateral, if any, and all terms and conditions governing the contract. In broader terms, a loan agreement is a contract between a borrower and a lender that legislates the mutual assurances made by either party. The various types of loan agreements include term loans, working capital loans and facilities agreements. Loan agreements are essentially documented by a consolidation of the various promises made by the concerned parties.
Before entering into a loan agreement, a borrower must make valid declarations about his creditworthiness, cashflow and any security he might have in possession to pledge as security for a loan. Based on these declarations, the lender can set the terms and conditions of the contract between the two. But after all careful thought and consideration, loan agreement disputes still might crop up due to unfortunate circumstances.
The law gives the highest degree of assurance to agreements involving single home buyers and residential purposes. The court legislates individual loans with specific guidelines that apply to moneylenders about computation of premium, the terms of advance and conditions governing defaulters. A good loan agreement dispute lawyer in Perth will be able to answer all your queries with respect to borrowing and lending.
The laws that apply to customers seeking loans for business and trading in shares or anything to do with a speculative market, are a tad different. The resulting agreement for these kind of loans have a low degree of assurance in the eyes of the court. The law gives the least importance to business loans, including advances lent out to independent organizations and budding entrepreneurs. Make a prior appointment with us and we will be glad to be of assistance regarding anything to do with loan agreements. In case, you are involved in a loan dispute, don’t hesitate to approach our legal team who will guide you through the intricacies of the entire matter.
For more information, please get in touch with our resourceful team of litigation lawyers in Perth who will help you achieve the best possible outcome in any case.