Loaning a friend money and someone to witness contract .

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salaried

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Hello, A friend from work named Peter is lending an old friend money to purchase an apartment in Slovakia , They are both from there but both live in Ireland for now , Peter will get the money returned fairly quickly as his friend has mortgage approval from an Irish bank, He just will not have the money in time as there is a deadline for the transfer of funds agreed with the apartment owner , So basically it is a short term loan between friends , Peter asked me to check on the forum for advice , Would it make sense to have a solicitor have them both sign an agreement legally binding his friend to pay back the loan ? , Or would a legal clerk suffice , He does trust his friend and he is the one insisting on this type of arrangement , Thanks in advance for your help .
 
Not the question you asked, but which Irish bank is offering a mortgage on a foreign property? I didn't think it was possible, unless he owns a property here that they're taking security over?

Just make sure there genuinely is a mortgage offer and there isn't going to be an issue with your friend getting the money back.
 
Ok I read your post.

I am not a solicitor but will tell you the following.

Person A and person B are friends. Contracts between friends are not enforceable unless they are reduced to writing. Jones v Padavatton 1969

For a contract to be legal it must have the following.
A. Certainty (written)
B. Consideration (something for something)
C. Wriiten offer
D. Written acceptance
E. Capacity

If he has a verbal agreement it is impossible to prove. Also the law states that if you don't have a written agreement between family members or close friends, then it is assumed you have a gentlemans agreement and not a contract.

Finally, the property in another country maybe subject to the other countries law and not Irish law. If you are considering this use a solicitor and state under terms and conditions that any breach of contract is held in the Irish courts and also state it is legally binding and it has a signature and date etc. Finally have witnessed the signing.
 
Thanks Tanos0 and red onion , They decided to deal with a solicitor , I contacted one and the fee is 300 euro , The rest they can sort out between them , Good of you to reply and thank you for your help.
 
Has the friend loaning the money seen the mortgage offer document?

Why is there such a rush over this, why can't the purchaser wait for mortgage drawdown?

How much money is this? Are both of them Slovakian?
 
+1 the above.

An additional thought.

Indemnities or contractual undertakings are useless practically if there is no security for the loan in case the friend receiving it defaults. Alternatively, if there is no security you then ask yourself how enforceable are my contractual rights in the event of a judgment in the event of default. The lender here might get a decree in the event of a default but how will that be enforced against assets outside the jurisdiction ?
 
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