FREE Canadian Demand Loan Agreement
This free Demand Loan Agreement for use in Canada allows a lender to agree to lend certain monies to the Borrower upon the terms and conditions set forth in the Agreement.
Disclaimer:This was not drafted by a attorney & should not be used as a legal document.
DEMAND LOAN AGREEMENT
This Loan Agreement is made on this [Date] by and between:
Mr. [Name], having his permanent residence at [Address], hereinafter referred as the Lender;
Mr. [Name], having his permanent residence at [Address], hereinafter referred as the Borrower.
WHEREAS the Lender has agreed to lend certain monies to the Borrower upon the terms and conditions set forth in this Agreement.
NOW THEREFORE IN CONSIDERATION OF the advance to be made by the Lender to the Borrower and the mutual covenants and agreement hereinafter contained and for other good and valuable consideration, the receipt of which is hereby acknowledged, both the parties agree as following:
1. Loan: The Lender hereby loans to the Borrower a sum of CAN $ [Amount], (the Loan Amount). The Borrower acknowledges the receipt of the Loan Amount received from the Lender.
2. Interest: The Loan amount shall bear an annual interest [Rate of interest] calculated and compounded monthly, from the date hereof until finally paid off. Payable on Demand: The Loan Amount along with all the accrued interest shall be payable on demand by the Borrower to the Lender.
3. Entire Agreement: It is understood between both the parties that the terms and conditions given under this Agreement constitutes the entire agreement between both the parties and there are no warranties, covenants, representations or agreements whether express or implied except as expressly set out herein.
4. Representations and Warranties: The Borrower represents and warrants that: -
a. its obligations under this Agreement are valid and binding and are enforceable against him in accordance with their terms except as enforceability may be limited by bankruptcy, insolvency or similar laws affecting creditors’ rights; and
b. he has fully disclosed in writing to the Lender all facts relating to this Agreement and anything in connection with them which are material to the assessment to the nature and amount of the risk undertaken by the Lender in entering into this Agreement and doing anything in connection with them.
5. Events of Default: An Event of Default occurs if: -
a. the Borrower does not pay on time any money payable under this Agreement in the manner required under it.
6. Assignment: This Agreement may not be assigned by the Borrower to any third party without the prior written permission of the Lender.
7. Governing Law and Dispute Resolution: Any dispute or difference arising out of or in connection with this Agreement shall be resolved by means of reference to arbitration to be appointed by mutual consent of the Parties in accordance with the International Commercial Arbitration Act (Province).
IN WITNESS WHEREOF the Parties hereto have executed this Agreement as of the date mentioned above: