Loan contract is a special legal term, which refers to a contract in which the parties agree that one party will transfer the ownership of a certain kind and quantity of currency to the other party, and the other party will return the same kind and quantity of currency within a certain period of time.
What is the specific difference between the two?
Difference 1: It has different effects on whether the repayment certificate has been made.
The loan is to be repaid. Theoretically, any loan document should have repayment time (although it is not clear in practice, it does not mean that repayment is not necessary). Holding a loan contract or an iou has different functions in proving whether to repay.
Holding a loan contract is not necessarily related to fulfilling contractual obligations. Therefore, holding a loan contract cannot be used to prove that the debtor has not repaid the loan. Even if the holding time is later than the repayment time agreed in the contract, it is untenable to prove that the debtor has not repaid the debt by holding the contract, which constitutes a breach of contract.
According to the general operation process of using IOUs among the people, when a loan occurs (is delivered), the debtor writes and issues IOUs and delivers them to the creditors for holding. When the debtor repays the loan, the creditor will return the loan to the debtor. Therefore, if the creditor holds the IOU, it can also prove that the debtor has not repaid.
If there is a clear repayment time on the IOU, "holding" can be divided into holding before the repayment time and holding after the repayment time. The "holding" before the repayment time cannot prove the debtor's breach of contract; However, if the creditor still holds the IOU after the repayment time, it can preliminarily prove that the debtor has not repaid, which constitutes a breach of contract. Therefore, the "holding" of creditors who have passed the repayment time can generally be used as such evidence that they claim: that is, to prove the debtor's breach of contract.
Difference 2: Different ways of establishment.
According to the relevant provisions of the Contract Law, a contract is an agreement between natural persons, legal persons and other organizations with equal subjects to establish, change and terminate the relationship of civil rights and obligations. A loan contract is a contract in which the borrower borrows money from the lender, repays the loan at maturity and pays interest.
The establishment of a loan contract (in written form) is generally agreed by both parties, and the contract is established after both parties sign (seal). Under normal circumstances, after the contract is established, it will be performed again, and the establishment and performance are separated. This is how a typical bank loan is operated; There are also individual agreements that stipulate that the contract shall be performed immediately after its establishment.
IOUs are mostly used for private lending. According to the custom of private lending, after the two parties reach an agreement, if the borrower immediately pays the loan to the other party, the other party will immediately show (establish) the loan to the lender. That is, the lender holds an iou to prove that the borrowing behavior must occur.
It can be seen that the establishment of the loan contract is not necessarily related to the first performance of the contractual obligations (payment of the loan); However, the establishment of IOUs is bound to be related to the first performance of contractual obligations (payment of loans).
Difference 3: The legal meanings of documents are different.
The general loan contract is made in duplicate, with each party holding one copy. From the foregoing analysis, it can be seen that holding a loan contract does not have the legal significance of proving whether the agreed obligations have been fulfilled (occurred), but only has the legal significance of the establishment (or entry into force) of the contract and the specific contents of the agreement reached by both parties. Generally, only one IOU is written by the borrower and handed over to the lender when the loan is repaid. Therefore, the lender (creditor) "holds" the IOU, which can prove that the lender paid the loan to the borrower and the borrower received the loan.
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