[phish]

Unless you have collateral, the contract probably isn't worth a lot since if he ain't got it, you ain't gonna get it. And if he has it and doesn't want to pay, the cost of collecting it will eat up much of what the loan's worth and ruin your friendship.

Other than credit card loans, banks don't give personal loans with no collateral for good reason. A contract is just a piece of paper. It's better than not having one, but don't think that your money's secure just cause you have a 'contract.'