In everyday life, an IOU is a common legal document used to prove the borrowing relationship between the borrower and the lender. A formal IOU can not only protect the rights and interests of the lender, but also avoid unnecessary disputes. So, how do you prepare a formal IOU?Here's an example.
Suppose Zhang San borrows 100,000 yuan from Li Si and agrees to repay it after one year, with an interest rate of 5% per year. In order to protect the rights and interests of both parties, Zhang San needs to issue a formal IOU to Li Si.
IOUs. Borrower: Zhang San.
ID number: xxxxxxxxxxxxxxxxxx
Lender: Li Si.
ID number: xxxxxxxxxxxxxxxxxx
In accordance with the Civil Code of the People's Republic of China and relevant laws and regulations, the borrower and the lender have reached the following agreement on the loan on the basis of equality, voluntariness and fairness:
1. The amount borrowed.
The Borrower borrows RMB 100,000 from the Lender.
2. Loan term.
The term of the loan is one year, from xx/xx/xxxx to xx/xx/xxxx.
3. Purpose of borrowing.
The purpose of the loan is xxxx (specify the purpose of the loan).
4. Repayment method.
The Borrower shall repay the principal and interest in a lump sum before xx/xx/xx of xxxx year, totaling RMB 115,000.
5. Warranties.
1.The borrower shall ensure that the purpose of the loan is legal and compliant, and shall not use the loan for illegal purposes.
2.The borrower shall repay the principal and interest on time, and shall bear the corresponding liability for breach of contract if it fails to repay within the time limit.
3.The borrower shall bear the attorney's fees, litigation costs and other related expenses incurred due to the default.
VI. Dispute Resolution.
Any dispute arising out of this IOU shall be settled through friendly negotiation between the partiesIf the negotiation fails, either party has the right to file a lawsuit with the people's court where the lender is located.
7. Miscellaneous.
1.This IOU shall come into force on the date of signature or seal of both parties.
2.This IOU shall be executed in duplicate, one copy for each borrower and the lender, and shall have the same legal effect.
3.Matters not covered in this IOU may be supplemented by separate negotiations. The Supplemental Agreement shall have the same legal effect as this IOU.
Borrower (Signature): Lender (Signature):
Date: xx/xx/xx Date: xx/xx/xx/xxxx.