Document background
The Agreement To Loan Money To A Friend is a specialized legal document designed for use in Austria when one individual wishes to formalize a monetary loan to a friend or personal acquaintance. This document becomes relevant when parties want to transform an informal lending arrangement into a legally binding agreement, providing clarity and protection for both parties while maintaining the personal nature of the relationship. It includes essential elements required under Austrian civil law (ABGB), such as loan amount, repayment terms, and any interest arrangements, while avoiding overly complex commercial lending terms that would be inappropriate for personal relationships. The agreement helps prevent future misunderstandings and provides a clear framework for the lending arrangement while ensuring compliance with Austrian legal requirements regarding private loans.
