Receipt for money received

Published byDocMuse

Written evidence that a sum has been paid and received — on a private sale, a deposit, rent or a loan. It is completed by the person receiving the money and signed as the money changes hands.

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Common questions

Does a receipt replace a contract?

No. A receipt proves a sum was received; a contract settles why and on what terms. For a loan both are needed — a receipt without a contract leaves open whether the money was lent or given.

Is the reason for the payment compulsory?

Effectively yes. A receipt giving only a sum and a date proves payment but not what for, and that is exactly the point in dispute later. One sentence of explanation costs less than any argument that follows.

Who keeps the receipt?

The person who paid — it is their evidence. The recipient signs it and hands it over; if both want a copy it is drawn up in two identical counterparts, which is good practice for larger sums.

Are witnesses or a notary needed?

For an ordinary receipt, no. The recipient's signature is what matters. A witness or notarisation is used for substantial sums, where there is reason to expect the signature itself to be challenged.