ORAL LOAN AGREEMENT IN LATVIA
The Civil law of Latvia does not require the conclusion of a loan agreement in writing. Thus, the parties of a loan agreement can also conclude it orally.
In the loan agreement the transfer of money is a mandatory component to establish the existence of a loan relationship. Thus, even without the existence of a written loan agreement, a person has the right to demand that the debtor repay the loan in accordance with the conditions agreed upon by the parties.
The lack of a written form of the loan agreement may make it difficult to prove the existence of a loan agreement and terms of it. In the case of a written loan agreement, it is easier for the parties to prove the commitments, whereas if an oral loan agreement is concluded, the existence of the loan agreement must be proven, for example, with a bank statement (on the transfer of the loan amount), witness testimonies, e-mail or WhatsApp correspondence between the parties, etc. evidence.
SIA “Attorney office LM LAW OFFICE” indicates that if the debtor does not return the loan, we recommend first to send the debtor a warning letter (by mail and e-mail), asking him to repay the loan. If the debtor does not return the loan, the person may go to court to collect the debt.
Please contact SIA “Attorney office LM LAW OFFICE” (phone: +37129224847) to receive advice and legal assistance of collecting the loan.