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Rocket Lawyer's Help videos provide a nice overview on a variety of legal topics from Harvard Law professor and TV Commentator Arthur Miller.

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Is it necessary to document a loan to a friend in writing?

It's just good practice to prepare a written agreement when you loan anyone money. This can be especially true when it comes to friends and family, where emotions can often interfere with business decisions. Whether you call it an IOU or a promissory note, this written document specifies the terms, rights and obligations that apply to the loan. The payment terms of the promissory note should be fair and reasonable. For example, most states have 'usury' laws which limit the interest rate that can be charged. A fifty percent interest rate would be illegal in most states.

Arthur Miller Legal Help Videos

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