I agev money to friend how to write agreements

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Yes, you can absolutely make a fresh legally binding agreement to protect yourself, but it must be carefully drafted so that it is enforceable in court. Since you originally lent ₹7 lakhs and the borrower has defaulted multiple times, you should now execute a Memorandum of Understanding (MoU) / Promissory Note on stamp paper, signed by both parties, preferably with two witnesses. In this new document, you can clearly state that the borrower owes you ₹7 lakhs (acknowledgment of debt) and is bound to repay it either (a) in money terms, or (b) in value equivalent to gold as per the prevailing market rate on the date of repayment. However, in court practice, monetary repayment is always stronger and more straightforward—so the safest way is to specify repayment in money, while linking it to the value of gold only as a benchmark (for example: “The borrower shall repay ₹7,00,000 or an equivalent amount calculated as per the prevailing market rate of 24K gold on the date of repayment, whichever is higher”). This ensures your claim remains in rupees, which is enforceable under law, but you also safeguard against inflation and rising gold prices. Such an document, duly stamped and signed, will be fully valid in civil court if default continues, and you will have clear evidence of acknowledgment of liability (which also resets the limitation period of three years from the date of execution). I advise you to draft this through a lawyer to avoid loopholes and include penalty/interest clauses for non-payment.

Advocate Sanil Sarkar LawRato