If not, you can also define a process for managing late payments. You can either set an additional deadline or immediately request a penalty if the payment is made to you. When it comes to money, it`s always wise to be especially careful. No matter how well you know the person you`re lending money to, take steps to make sure you`re protected. The drafting of this document is essential, especially when your agreement disintegrates. As a result, a dispute is less likely to result from a dispute, and when a dispute arises, the agreement may be what the court relies on to make a decision. If you are entering into a contract, make sure you understand the names of both parties. If the person creating the document is not very close to the other person, it is important to request this information.