Question

Colin is borrowing money from his uncle to start his business. In order to help avoid misunderstandings regarding the loan, Colin should do which of the following?
Responses

Hire a lawyer
Hire a lawyer

Hire his uncle as the financial director of the business
Hire his uncle as the financial director of the business

Put all agreements in writing
Put all agreements in writing

Involve other family members as witnesses

Answer 1

To help avoid misunderstandings regarding the loan, Colin should **put all agreements in writing**. This ensures that both parties clearly understand the terms of the loan and can refer back to the written agreement if any issues arise in the future. While hiring a lawyer or involving other family members as witnesses can also be helpful, having a written contract is the most critical step in ensuring clarity and protecting both parties' interests.