24 December 2014
I am lending someone money for business purpose. He will share profit with me. However, we are not making any partnership agreement rather we are making only court stamped document treating the amount as "borrowing". Or should i opt for taking undated security cheque which can be bounced in case borrower default?
What is the better approach? Court paper or cheque?
IF IT IS SOLE OCCASION FOR YOU TO LEND,THEN GET A PROMISSORY NOTE EXECUTED BY DEBTOR TOGETHER WITH AN AGREEMENT MENTIONING DETAILS OF POST DATED CHEQUES GIVEN IN PAYMENT OF YOUR LOAN AND AGREED INTEREST.