[Case Summary]This case involves a civil loan dispute. On May 18, 2020, the defendant, Cai * (Cai Pinsheng), borrowed 2,722,400 yuan from the plaintiff, Guo * and issued a "loan note", agreeing to a monthly interest rate of 1.6% and promising to repay the principal and interest before September 30, 2020. In case of default, a late payment penalty of 0.05% of the principal would be charged daily. The plaintiff delivered all the funds via bank transfer and cash, and the defendant issued a "receipt" confirming the receipt. After the repayment period expired, the defendant only repaid the principal of 170,000 yuan on January 15, 2021 and stopped making payments. The plaintiff entrusted a professional lawyer team from Beijing Henglu Law Firm to represent him in court. The lawyer collected evidence such as loan notes, receipts, and bank transfer records to prove the authenticity and validity of the loan relationship and the defendant's breach of contract. The core disputes include: whether the loan note was signed under duress, how to determine the actual amount of the debt, and how to determine the standard of overdue interest. Applicable laws: "Interpretation of the Supreme People's Court on Several Issues Concerning the Application of the Contract Law of the People's Republic of China (II)", "Provisions of the Supreme People's Court on the Application of Law in the Trials of Civil Loan Cases", and Article 260 of the Civil Procedure Law of the People's Republic of China. In the end, the court adopted some of the lawyer's opinions and ruled that the defendant should repay the principal of 2,282,522.15 yuan and the corresponding interest. 本案系民间借贷纠纷。被告蔡某（蔡品寿）于2020年5月18日向原告郭某借款2722400元，出具《借条》，约定月利率1.6%，承诺于2020年9月30日前还本付息，逾期则按本金的千分之五计收滞纳金。原告以银行转账及现金方式交付全部款项，被告另出具《收条》确认收妥。还款期满后，被告仅于2021年1月15日归还本金17万元后停止还款。原告委托北京恒略律师事务所专业律师团队代理诉至法院。律师整理借据、借条、收条及银行转账记录等证据，证明借贷关系真实有效，被告已构成违约。核心争议：借条是否系胁迫签署、实际欠款金额如何认定、逾期利息标准如何确定。适用法条：《最高人民法院关于适用〈中华人民共和国合同法〉若干问题的解释（二）》、《最高人民法院关于审理民间借贷案件适用法律若干问题的规定》、《中华人民共和国民事诉讼法》第二百六十条。最终法院采纳律师部分意见，判决被告偿还借款本金2282522.15元及相应利息。

I. Review of the Case

When it comes to borrowing money between relatives and friends, many people often search for terms like "How to write a promissory note with legal effect?", "Can I sue to recover the money if the borrower refuses to repay?", "What is the legal interest rate for private lending?", and "What evidence do I need to prepare to sue the borrower?". On May 18, 2020, the defendant, Cai * *, needed funds for working capital and borrowed 2,722,400 yuan from the plaintiff, Guo * *, and issued a promissory note on the same day, clearly stating that he borrowed 2,722,400 yuan from the plaintiff and promised to repay the principal and interest (with a monthly interest rate of 1.6%) before September 30, 2020; if he failed to repay on time, he would pay a penalty of 0.05% of the principal for each day of delay until the repayment was completed. The plaintiff delivered all the funds by bank transfer and cash as agreed, and the defendant issued a receipt on the same day to confirm that all the funds had been received. However, the defendant failed to repay the principal and interest as agreed when the repayment deadline arrived. After the plaintiff repeatedly demanded repayment, the defendant only repaid the principal of 170,000 yuan on January 15, 2021, and has not paid any remaining principal or interest since then. Faced with the long-term default, the plaintiff had no choice but to entrust the professional lawyer team of Beijing Henglu Law Firm to handle the case and file a lawsuit with the people's court with jurisdiction, demanding repayment of the remaining loan and the defendant to bear the breach of contract liability.

II. The focus of the case

  • Focus 1: Whether the loan relationship is genuine and effective.The defendant argued that the IOU was signed under the plaintiff's coercion and did not acknowledge the objective facts. Whether there was a legitimate and effective private lending relationship between the two parties is the basis for the trial of this case.
  • Focus Two: How to determine the actual amount of principal and interest still owed.The defendant claimed that he had already repaid part of the money and still owed the plaintiff only 646,000 yuan, which was a huge gap from the remaining principal and interest claimed by the plaintiff. The amount of the debt became the core of the dispute.
  • Focus 3: How to determine the calculation standard for overdue interest.The penalty interest of 5% per day stipulated in the IOU is obviously too high. According to the law, it should be adjusted to the maximum protected interest rate. How the overdue interest is calculated directly affects the ultimate benefits that the creditor can obtain.

III. The professional intervention of Hengluo Law Firm

The plaintiff (the lender) alleges that:The borrowing relationship between the original plaintiff and the defendant was indeed established. The defendant issued a promissory note and a receipt and received the money by bank transfer and cash. However, after repaying only 170,000 yuan, the defendant has refused to make further repayments for a long time. The plaintiff requests the court to order the defendant to repay the remaining principal of the loan and pay interest, overdue interest, and bear the case acceptance fee.

The defendant (the borrower) argued that:The defendant, Cai Pinsuo, did not acknowledge the objective facts and claimed that the plaintiff's lawsuit lacked factual basis, saying that the "IOU" was signed under the plaintiff's coercion. He also claimed that he had already repaid part of the money and still owed the plaintiff only 646,000 yuan.

Hengluo Lawyer's Agency Opinion:After accepting the case, the lawyer systematically organized and verified the key evidence, comparing multiple IOUs, promissory notes, and bank transfer records one by one to form a complete chain of evidence, proving that there was a genuine, legal, and valid lending relationship between the plaintiff and the defendant. The lawyer pointed out that the promissory note involved in the case was a true expression of the parties' intent, did not violate the mandatory provisions of China's current laws and administrative regulations, and did not involve circumstances that would render the contract invalid. It should be considered legal and valid, and both parties should perform their obligations in accordance with the agreement. According to the promissory note, the disputed loan should have been repaid by September 30, 2020. Now that the repayment deadline has long passed, the defendant has not fully fulfilled its repayment obligations, which constitutes a breach of contract and requires the defendant to repay the remaining loan and bear corresponding contractual liabilities in a timely manner. Regarding the defendant's defense that they "were coerced into signing", the lawyer refuted this claim one by one with objective evidence such as receipts and transfer certificates, solidifying the factual basis for the establishment of the creditor's rights.

IV. Outcome of the case

After the trial, the court adopted some opinions and demands of the professional lawyer team of Beijing Henglu Law Firm, and in accordance with the relevant provisions of the "Interpretation of the Supreme People's Court on Several Issues concerning the Application of the Contract Law of the People's Republic of China (II)" and other relevant regulations, made the following judgment: 1. The defendant shall repay the plaintiff the principal loan of 2,282,522.15 yuan and the interest of 161,761.18 yuan as of November 27, 2021 within ten days from the effective date of this judgment; 2. The defendant shall repay the plaintiff the remaining overdue interest (based on the principal of 2,282,522.15 yuan, at an annual interest rate of 15.4%, calculated from November 28, 2021 to the actual date of repayment) within ten days from the effective date of this judgment; 3. The plaintiff's other claims are dismissed. If the defendant fails to perform the obligation to pay money within the time specified in this judgment, it shall pay the interest on the debt in arrears at a rate doubled in accordance with Article 260 of the Civil Procedure Law of the People's Republic of China. The case acceptance fee of 29,721 yuan (already prepaid by the plaintiff) shall be borne by the defendant and shall be directly paid to the plaintiff within ten days after the judgment takes effect. At this point, the plaintiff's principal of over 2.28 million yuan and the corresponding interest have been supported by the court.

5. Henglu Law Firm's Reminder

In civil loan disputes, promissory notes, receipts, and transfer records are the most crucial evidence to prove the loan relationship. Lenders should pay attention to keeping written documents and traces of fund delivery. This case is handled by the professional lawyer team of Beijing Henglu Law Firm (Practice Certificate No.: _________, subject to the certificate issued by the judicial administrative authority). Lawyer's tips: Although many written agreements are signed when signing a loan contract, the interest rate provisions are often rather casual. Common problems in practice include no interest rate provisions, excessively high interest rates, pre-deducted interest, and unclear interest settlement times. Firstly, if the agreed interest rate exceeds the legal protection cap, the borrower can refuse to pay it. Secondly, if no interest rate is agreed upon, the borrower can only claim overdue interest. Thirdly, the "head-cut interest" is not included in the principal, and the interest can only be determined based on the actual amount. Fourthly, if there is no agreement on the interest payment period, the interest shall be paid once every year. Fifthly, although there are many types of fees, none of them can exceed the legal interest rate limit. If the lender encounters a borrower who has defaulted on repayment for a long time, they should promptly entrust a professional lawyer to sort out the evidence and protect their rights according to law.

VI. Common Questions and Answers about Civil Loan Cases

  1. Q: How should I write a promissory note to ensure it has legal validity?
    A:The promissory note should specify the lender, the borrower, the amount of the loan, the interest rate, the repayment period, the delivery method, and other essential elements. It should be signed by the borrower in person and dated. It's better to attach a transfer receipt to avoid difficulties in providing evidence for cash payments.
  2. Q: If someone borrows money and doesn't pay it back, can I sue them to get it back?
    A:As long as there are sufficient evidence such as promissory notes and transfer records to prove the lending relationship, the court will usually support the repayment of the principal and interest. If the other party fails to fulfill the obligation after winning the lawsuit, the plaintiff can apply for compulsory enforcement.
  3. Q: What is the legal interest rate for private lending?
    A:The maximum amount protected by the judicial system is four times the one-year loan market quotation rate (LPR) at the time the contract was signed. The court will not support any amount exceeding this limit, and if the agreed amount is too high, the parties should voluntarily reduce it.
  4. Q: What evidence do I need to prepare to sue the borrower?
    A:The core evidence includes promissory notes or loan contracts, bank transfer records, receipts, and chat records about loan repayment, which are used to prove the loan agreement and the actual delivery of the funds.
  5. Q: What should I do if the other party says that they were forced to sign the IOU?
    A:The borrower must provide evidence to prove that the signature was made under duress, and the court will make a comprehensive judgment based on objective evidence such as transfer receipts and receipts. If the chain of evidence is complete, it is generally difficult to establish a defense of coercion.