The Simple Promissory Note Between Family Members is designed for use in situations where one family member wishes to extend a loan to another in Denmark, requiring formal documentation of the arrangement. This document type is particularly relevant when family members want to ensure clear understanding and avoid future disputes while complying with Danish legal and tax requirements. The note includes essential information such as loan amount, repayment terms, and any applicable interest, while remaining simpler than commercial loan agreements. It's governed by Danish law, particularly the Danish Contracts Act (Aftaleloven) and relevant tax regulations. The document serves multiple purposes: it provides legal protection for both parties, helps avoid misunderstandings about loan terms, and ensures compliance with Danish tax authorities' requirements for documenting family loans.

1. Parties: Identifies the lender and borrower with their full legal names, addresses, and relationship to each other

2. Background: Brief context of the family loan arrangement and purpose

3. Definitions: Key terms used in the document, kept minimal for simplicity

4. Loan Amount: The principal amount being borrowed, stated clearly in numbers and words

5. Interest Rate: Specified interest rate (if any) and calculation method

6. Repayment Terms: Payment schedule, including amount, frequency, and due dates

7. Method of Payment: Accepted payment methods and payment instructions

8. Term and Maturity: Duration of the loan and final repayment date

9. Signatures: Execution section with date and signatures of both parties