Would this loan agrmt be valid?

Hi all, need your advice / thoughts on following.

Assume:
1. I would like to execute a private loan agreement with another party for a sum of $.
2. I am to borrow $X from the other party.
3. The loan is interest free.
4. There is no fixed term for the loan.
5. The lender can call on repayment of the entire sum if they provide me with 1 year notice.
6. The lender can call on repayment of the loan in instalments with 6 month notice for each instalment. Each instalment is to be limited to no more than 5% of the principal sum. Repayment of the instalments be at least 6 months apart.
7. Instead of paying interest, I am to guarantee the lender a percentage of any capital gain from one of my IPs if and when I sell it before the principal amount is repaid entirely. For argument sake, let's make it 25% of any capital gain (after all costs and taxes incurred by me in connection with selling this IP).

Would a contract along the above terms be valid?

Thanks
 
Hi all, need your advice / thoughts on following.

Assume:
1. I would like to execute a private loan agreement with another party for a sum of $.
2. I am to borrow $X from the other party.
3. The loan is interest free.
4. There is no fixed term for the loan.
5. The lender can call on repayment of the entire sum if they provide me with 1 year notice.
6. The lender can call on repayment of the loan in instalments with 6 month notice for each instalment. Each instalment is to be limited to no more than 5% of the principal sum. Repayment of the instalments be at least 6 months apart.
7. Instead of paying interest, I am to guarantee the lender a percentage of any capital gain from one of my IPs if and when I sell it before the principal amount is repaid entirely. For argument sake, let's make it 25% of any capital gain (after all costs and taxes incurred by me in connection with selling this IP).

Would a contract along the above terms be valid?

Thanks

I think you should be asking if the contract would hold up in court?
 
Yes, I doubt a murderer would try to enforce the contract in court. They may have other ways to enforce however!

I seem to recall a case where a contract was voided because of illegality and it involved a prostitute hiring a carriage to ply her trade and the contract couldn't be enforced because prostitution was illegal.
 
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