tiktok���˰�

The Personal Loan Contract Between Friends is designed for situations where individuals in Germany wish to formalize a lending arrangement with someone they know personally. This document type is particularly important as it helps prevent misunderstandings and provides legal protection for both parties, despite their friendly relationship. The contract complies with German civil law requirements while remaining accessible to non-legal professionals. It should be used whenever friends agree to lend money to each other, regardless of the amount involved. The document typically includes details about the loan amount, repayment schedule, any interest charges, default provisions, and the consequences of breach. While maintaining formality, it acknowledges the personal nature of the relationship while ensuring legal enforceability under German law.

1. Parties: Identification of lender and borrower with full legal names and addresses

2. Background: Brief context of the loan arrangement and relationship between parties

3. Definitions: Key terms used in the agreement including 'Loan Amount', 'Interest Rate' (if applicable), 'Repayment Date'

4. Loan Amount and Purpose: Specification of the loan amount and intended use of funds

5. Repayment Terms: Details of how and when the loan will be repaid, including payment schedule

6. Interest: Interest rate if applicable, or explicit statement if it's interest-free

7. Method of Payment: Specified payment methods and bank account details for transfers

8. Default Provisions: Consequences of missed payments or breach of contract terms

9. Term and Termination: Duration of the loan and conditions for early termination

10. Governing Law: Confirmation that German law governs the agreement

11. Signatures: Execution block for both parties with date and place of signing