In the world of finance, where transactions and obligations play a crucial role, a receipt for funds acts as a reliable tool that ensures transparency and protects the interests of the parties involved.

This seemingly simple document carries significant legal weight and can prevent many potential disputes and disagreements.

So, what exactly is a receipt for funds?
A receipt for funds, also known as a promissory note (Article 1047, Part 2 of the Civil Code of Ukraine), is a legal document confirming the transfer of money from one person to another.

In simpler terms, it is a document issued by the Borrower to the Lender.
It serves as evidence in case of disputes, outlines the terms of the transfer, protects the interests of both parties, and has legal force.

What Information Should Be Included in a Receipt for Funds?

Key points to include when drafting a promissory note:

• Parties’ details: Full names, passport details, registered and actual addresses of the lender (the person giving the money) and the borrower (the person receiving the money). Taxpayer identification numbers (TINs) of both parties are recommended.
• Loan amount: The debt amount should be written both in numbers and in words, and the currency must be specified.
• Repayment term: The due date for repayment or the procedure for repayment (e.g., monthly payments). If no term is specified, it is assumed that the debt must be repaid within 30 days from the date of demand.
• Interest: If interest is to be charged, the receipt must specify the interest rate for using the loan and the procedure for its accrual and payment.
• Penalties: Possible penalties for late repayment (Article 1047 of the Civil Code of Ukraine).
• Signatures: Signatures of the lender and the borrower, with printed names. If witnesses are present, their signatures must also be included.
  

The receipt should be written clearly and in detail, in two copies, to avoid disputes and legal complications in the future.
In the case of a large loan amount, it is best to have the document notarized.

How to Properly Draft a Receipt Depending on the Situation

When we think of a receipt, the first thing that comes to mind is a loan or debt. But its classification doesn’t end there.
As a legal instrument, a receipt is not limited to confirming the transfer of money.
Depending on the circumstances and purposes, it can take various forms, each with its own specific features and nuances.
Understanding these differences helps ensure the document is drafted correctly and protects your interests.

A receipt may be:

• A receipt for a deposit;
• A receipt for receiving money;
• A receipt confirming a transaction.

Receipt for a Deposit

A receipt for receiving money is necessary not only in cases of loans but also, for example, when transferring a deposit during the purchase of real estate.
According to Article 570 of the Civil Code of Ukraine, a deposit is a sum of money or movable property transferred by the debtor to the creditor as part of future payments, to confirm the obligation and ensure its fulfillment.
A receipt for a deposit is drafted using the same principles as a regular receipt for funds, but it must clearly state that the received funds are a deposit and are transferred to secure the fulfillment of the agreement (transaction).
The parties to the receipt must be the same as those in the main contract.

Receipt for Receiving Money

Article 202 of the Civil Code of Ukraine defines a transaction as an action aimed at establishing, altering, or terminating civil rights and obligations.
Transactions can be unilateral or bilateral (multilateral), i.e., contracts.

According to Article 207 of the Civil Code of Ukraine, which is effective at the time of concluding a loan agreement, a transaction executed in written form must be documented in one or more documents, including letters or telegrams exchanged between the parties, and signed by the party (or parties).
If the transaction is made by a legal entity, it must be signed by authorized representatives and sealed with the official stamp.

A receipt for receiving money as a loan is a document that the debtor issues to the creditor under a loan agreement, confirming the fact of concluding the agreement and receiving funds or goods.

Receipt Confirming a Transaction

When conducting real estate transactions, especially involving money transfers, it is extremely important to draft a receipt confirming the receipt of funds.
Although many people create such receipts in a free form, there are specific rules that should be followed to protect your financial interests.

A real estate purchase agreement, while it documents the fact of the transaction, does not confirm the fact of payment.
Proof of payment may include cash register receipts, payment slips, or handwritten receipts.
However, in the case of staged payments — when the total amount is split between a deposit and a final payment — the receipt becomes the only reliable proof.

Regardless of the form of payment, always request a receipt confirming the transfer of funds.
This document will serve as your evidence in case of a dispute.
The same principle applies to rental agreements, although landlords often avoid issuing receipts due to concerns about tax reporting.

The absence of a receipt may lead to a dishonest seller filing a claim in court for the return of the property, alleging that the payment was never made.
Court practice shows that in the absence of documentary proof of payment, such claims are often granted.

Thus, issuing a receipt is not a sign of distrust — it is a necessary measure to protect your financial interests in real estate transactions.

Under What Conditions Can a Promissory Note Be Considered Invalid?

A promissory note, like any other legal document, may be deemed invalid under certain circumstances.

The most common reason for a receipt to be considered invalid is non-compliance with the required form and content. This may include:

• Missing required details: If the receipt lacks full names of the parties, passport details, loan amount, date of issue, or signatures, it may be declared invalid.
• Violation of legal requirements: The receipt must comply with civil law regulations.
• Errors and corrections: Significant errors or unverified corrections may call the document’s authenticity into question.
  

A receipt may also be considered invalid in the following situations:

• If at the time of the transaction, the borrower was under duress, fraud, or coercion, or the receipt was signed under extreme circumstances on terms highly unfavorable to one of the parties.
  
• If the debtor can prove that the funds were never actually transferred, the receipt may be invalidated.
  
• If the transaction was made without intent to create legal consequences or was intended to disguise another transaction.
  
• If the statute of limitations for filing claims under the receipt has expired, it may be deemed unenforceable at the request of the debtor.
  
• If one of the parties was legally incapacitated at the time of signing (e.g., a minor or a person legally declared incompetent by a court), the receipt can be invalidated.
  

In order for a court to declare a receipt invalid, substantial evidence must be presented proving legal violations or circumstances that render the document invalid.

In such cases, it is strongly recommended to seek assistance from a qualified attorney, who can help collect the necessary evidence, correctly prepare the claim, and represent your interests in court.

Legal support can help avoid mistakes and increase the chances of a favorable outcome.