The Agreement Between Two Persons For Money is a fundamental legal document used in Canadian jurisdictions when one individual lends money to another. This type of agreement is essential for protecting both parties' interests in personal lending situations, whether for family loans, private investments, or personal financial arrangements. The document provides a clear record of the loan terms, helps prevent future disputes, and ensures compliance with Canadian federal and provincial laws governing financial transactions. It includes essential elements such as loan amount, repayment terms, interest provisions (subject to the federal Interest Act), and default remedies. This agreement is particularly valuable in situations where formal documentation is needed for significant personal loans, tax purposes, or potential legal proceedings. The document can be customized to include additional provisions such as security interests or guarantor requirements while maintaining its core purpose as a personal lending agreement.

1. Parties: Identifies and provides full legal names and addresses of both the lender and borrower

2. Background: Explains the context of the agreement and the parties' intention to enter into a lending arrangement

3. Definitions: Defines key terms used throughout the agreement for clarity and legal certainty

4. Loan Amount and Purpose: Specifies the exact amount being lent and the purpose for which the money is being borrowed

5. Repayment Terms: Details the repayment schedule, including payment amounts, frequency, and method of payment

6. Interest Rate: Specifies the interest rate (if any) and how it is calculated, in compliance with the Interest Act

7. Default and Remedies: Defines what constitutes default and outlines the remedies available to the lender

8. Representations and Warranties: Contains basic statements about the parties' capacity to enter into the agreement

9. Notices: Specifies how and where official communications between parties should be sent

10. Governing Law: Establishes that Canadian law governs the agreement and specifies the applicable province

11. Entire Agreement: Confirms that this document represents the complete agreement between the parties

12. Signature Page: Space for both parties to sign and date the agreement