Beware, on demand loans may not be enforceable.

If a loan is made and it is repayable on demand or at call and no mention is made for a repayment date or the giving of notice demanding payment, beware that the loan may not be enforceable after 6 years from the date of the loan.

This is because the law treats such loans as immediately repayable after the loan is made and subject to a few exceptions, the time limited for taking action to recover the loan expires after 6 years.

In order to ensure your rights are not lost by such a limitation period, all loans, no matter how small and whether to family members or friends should be contained in a Loan Agreement.

Loan Agreements can be drafted to suit the circumstances of the matter.

The articles on this website comprise legal general information and not legal advice. The general information presented here must not be relied upon without legal advice being sought. In the event that you wish to obtain legal advice on the contents of this general information you may do so by contacting our office or your existing solicitor.