Document background
The Car Loan Contract Between Friends is designed for use in the United Arab Emirates when one individual wishes to provide a car loan to a friend in a legally structured manner. This document becomes necessary when friends want to formalize their lending arrangement while ensuring compliance with UAE civil law and, optionally, Sharia principles. It provides essential protection for both parties by clearly defining loan terms, vehicle details, repayment schedules, and security arrangements. The contract is particularly relevant in the UAE context where personal lending is common but requires careful documentation to be legally enforceable. It incorporates necessary provisions from UAE Federal Laws regarding civil transactions, vehicle ownership, and financial dealings, while maintaining the flexibility needed for a friendship-based arrangement.
