Document background
The Personal Loan Contract Between Friends is essential for documenting private lending arrangements in Denmark, providing legal structure while maintaining the informal nature of friendly loans. This document should be used whenever friends enter into a lending arrangement to ensure clear terms and protect both parties' interests. It includes crucial elements required under Danish law such as parties' details, loan amount, interest terms (compliant with Danish Interest Act), repayment schedule, and default provisions. The contract helps prevent misunderstandings and provides legal recourse if needed, while still acknowledging the personal relationship between parties. It's particularly relevant in today's sharing economy where informal lending between individuals has become more common, and ensures compliance with Danish tax reporting requirements when applicable.
