Is a loan contract valid if a different amount than was stated was borrowed?
<p>If there is a contract written that entitles one party (the lender) to give another party (the borrower) X amount of money (e.g., £700) and the lender only gives some fraction of that (e.g., £300) on account of the borrower not requiring the full amount, is the contract invalidated on account of not containing the right amount (or rather the borrower not being given the full amount)?</p>

<p>If by invalidated you mean you do not have to pay it back, no it is not invalidated. </p>

<p>The way a loan is supposed to work is that you are given the money and then you could spend it or use the unused portion of the money to pay back the loan. </p>

<p>The $400 that you did not use would technically be considered payment on the loan and you would owe $300.</p>

contract-law borrowing