16 June 2015
If you are considering borrowing or lending money and the intention is that the advanced funds are to be repaid, then you should seek advice from a commercial lawyer and have a loan agreement properly drawn to reflect the intention of the parties at the time of the advance. In cases involving disputed loans, generally the Court in family law matters will view loans between related parties suspiciously with all evidence being examined, including the terms of any signed loan agreement, security, and evidence of repayments. The take away point from this case is to minimise the risk of the loan becoming statute barred after six years. Your loan agreement should specify a date or period when the loan is due, or alternatively, make it repayable upon an event, such as repayable one month after a demand.