Do handwritten loan papers have legal validity? Not everyone understands the provisions of the law on lending and debt repayment to protect their interests.
Currently, many lending and borrowing transactions are usually negotiated through handwritten paper. However, when there is a dispute, is the handwritten loan document legally valid ? The following article CashBerry will help readers solve problems.
What is a loan document?
A loan or loan agreement, also known as a property loan contract, is a cooperative agreement between parties whereby the lender will hand over the property to the borrower. At the end of the installment loan term , the borrower must return the property in the correct quantity, quality and corresponding interest, if any.
Lending money needs to be made in writing in the form of a loan paper , a loan contract if there is interest or can be made into a loan document (usually without interest). The parties need to voluntarily prepare and sign to ensure the loan and loan documents are legally valid.
Do handwritten loan papers have legal validity?
Currently, not everyone knows the provisions of the law on lending and debt repayment to protect their legitimate interests. One of the most concerned issues is whether the handwritten loan has legal validity ? Is the handwritten loan document valid?
According to Article 463 of the Civil Code 2015, a property loan contract is defined as follows:
Property loan contract is an agreement between parties whereby the lender delivers the property to the borrower; when the repayment is due, the borrower must return to the lender property of the same type in the correct quantity and quality and only pay interest if so agreed or prescribed by law.
According to this provision, it is not mandatory that the property loan contract be made in writing, this is just the agreement of the parties which mentions the following contents:
- The lender delivers the property to the borrower.
- When the repayment is due, the borrower must return the property of the same type in the correct quantity and quality to the lender of the property.
- Interest is only payable if there is an agreement or otherwise provided for by law.
It can be seen that debt borrowing can be considered a civil transaction because a civil transaction is a contract or unilateral legal act that gives rise to, changes or terminates civil rights and obligations.
At the same time, regarding the form of civil transactions, Article 119 of the Civil Code stipulates:
Civil transactions are expressed verbally, in writing or by specific acts.
Based on the above provisions, it can be seen that the property loan transaction including borrowing money is not required to be done in writing, through a contract, but can be expressed in writing, orally or in writing. behavior.
However, in order for a handwritten loan note to be valid, it must satisfy the conditions on the content specified in Article 463 of the Civil Code 2015 above and the conditions mentioned in Article 117 of this Code, including:
- The subject has civil legal capacity and civil act capacity suitable for the loan transaction.
- Lenders and borrowers must be completely voluntary.
- The purpose and content of the loan does not violate the prohibition of the law, and does not violate social ethics.
- Loan interest rate does not exceed 20%/year...
Thus, a handwritten loan can be legally valid if the above conditions are met.
Do handwritten loan documents need to be notarized?
Currently, the written form of a property loan contract does not have mandatory regulations on notarization and authentication. Therefore, the parties can choose to notarize or not notarize the property loan contract:
- In case the parties choose to notarize the property loan contract, the notarial practice organization is obliged to be a witness to the property loan contract. The contract becomes effective when the parties agree to the agreements and the notary practice organization notarizes the contract.
- In case the parties choose not to notarize the property loan contract, but the parties reach an agreement and sign the loan contract, then the property loan contract has legal validity and is a legal contract.
Although the property loan contract in both notary and non-notary cases is legally valid, however, in the event of a dispute, a notarized contract will make it easier to prove the loan. guarantee the legitimate rights and interests of the aggrieved party than the unnotarized loan contract.
How long is a handwritten loan note valid for?
The handwritten promissory note is valid indefinitely in the event of a lawsuit to reclaim the principal amount previously lent. However, for the case of claiming interest, the handwritten promissory note is only valid for 2 years so that the person with relevant legitimate rights and interests can initiate a lawsuit. more profit.
Legal basis in Clause 3, Article 23 of Resolution No. 03/2012/NQ-HDTP.
“Article 23. The statute of limitations for initiating lawsuits is specified in Clause 3, Article 159 of the CPC.
For civil disputes arising from civil transactions (property loan contracts, property depository contracts, property leases, property leases, processing contracts, transportation contracts, rights transfer contracts) land use right contract, land use right lease contract, land use right sublease contract), the settlement shall be as follows:
- a) For a dispute arising from a civil transaction, the statute of limitations specified in the relevant legal document shall apply to that type of transaction.
- b) With regard to disputes over property ownership, property recovery, or land use rights that are managed or possessed by another person through civil transactions, the statute of limitations does not apply.
Have you found the answer to the question of whether a handwritten loan is legally valid or not? Hopefully with the information that CashBerry provides, you will update your knowledge to help protect your legitimate rights and interests during loan transactions.
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