4. Standard. If the debtor is late in payments and cannot meet this default within a reasonable time, the debtor has the option of immediately declaring due and payable the entire remaining principal amount and all accrued interest. Traders undertake to PayPal its parent company to compensate, defend and keep affiliates unscathed, executives, directors, representatives, employees and suppliers, employees and suppliers of and against any legal action, liability, loss, penalty or any other cost (including legal fees and defence costs) that they may suffer or suffer as a result of (i) the violation of this agreement or any other agreement that you may accept with PayPal or its suppliers with respect to the use of the Braintree Payment Office; (ii) your use of braintree payment services; (iii) their actions or omissions; and/or iv) your violation of applicable laws, regulations or network rules and requirements. In conjunction with your use of braintree payments, you must follow Braintree`s acceptable use policy: www.braintreepayments.com/legal/acceptable-use-policy. For payments over $10,000, it is recommended that both parties add a notary confirmation to the contract and sign it in the presence of a notary. This is a very important part of the document. Without this information, the agreement would be useless. When the contract is concluded, make sure you receive the names of both parties correctly. If the person creating the document is not very close to the other person, it is important to ask for this information.
The document may be invalid if one of the two names is misspelled. There may be deposits where the borrower is not able to pay on time. If that happens, the agreement should provide information on what to do. As a lender, you can ask the borrower to pay a penalty for late payments. Otherwise, you can also set a process for late payments. You can either give extra time or immediately request a penalty if the payment arrives too late. Also indicate the exact date on which the loan will be fully paid. This is also the date of the last payment. This is essential to ensure that both parties know when the agreement will be reached.
If the loan has not been made on the specified date, both parties should discuss what to do next. Both parties would have already agreed to the terms of payment, so write them all down in the document. This is important for you to have documented evidence if one of the parties does not follow what has been written. Payment terms are important for the borrower and lender to know what to expect.