Thread: Real Life Problem

Dear All

I have a problem re a loan agreement for a commercial loan. Basically loan agreement is ambigous about rate of interest I should have been charged and I need you help to work whats true ie

Loan agreement says interest rate charged will be equal to base rate (say 5%) + 1/50%


Now if we convert 1/50 to a decimal then rate is 5% + 0.02% but loan company is arguing that 1/50 should be converted into a percentage so rate is 5% + 2%

Would be grateful for your help as it involves a lot of money over 10 years

Originally Posted by sanjay

Dear All

I have a problem re a loan agreement for a commercial loan. Basically loan agreement is ambigous about rate of interest I should have been charged and I need you help to work whats true ie

Loan agreement says interest rate charged will be equal to base rate (say 5%) + 1/50%


Now if we convert 1/50 to a decimal then rate is 5% + 0.02% but loan company is arguing that 1/50 should be converted into a percentage so rate is 5% + 2%

Would be grateful for your help as it involves a lot of money over 10 years

Without viewing the actual document, and knowing the common (local law) interpretations, any information might be of no value.

Your best bet is to talk with a lawyer, familiar with the laws in that area where you signed the document, who would know exactly what the contract intended. You may find that the contract was poorly constructed and you can have it interpreted your way.

Even if it has an error is one part, there may be other data that clarifies and gives a specific meaning for the language used. If it is clear from other wording what the intent was meant to be, you may be out of getting this resolved in you favor.

See a lawyer.
I am not one, but my third cousin's sister is married to a someone who knows one.