Guaranteed investment agreement

Guaranteed investment agreement – this term in Contracts & Obligations Law refers to a type of investment contract, where the investor agrees to put some amount of money into a project, and on the other hand the developer agrees after expiration of certain deadline to refund fixed amount of profit together with the initial loan. For example, a property investors puts 50 000 Euros into a project, against 65 000 Euros to be refunded to him after two years by the developer. Usually this is a risky contract namely because the project has still not been started at the moment of signing the contract, and in case something goes wrong, the investor won’t find enough available assets to collect their money back – bearing that usually such contracts have been offered to great amount of investors. So concluding such guaranteed investment contract should be done with a great care; the assistance of a qualified and licensed independent lawyer is advisable to be obtained in advance – sometimes 100 Euro spend on legal fees for advice could save a lot of head ache (consider expenses for pursuing refund) on a later stage.

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