Debtor-Creditor Relations

Debtor-creditor relations refer to the legal and financial relationship between an individual or entity that borrows money or owes an obligation (the debtor) and the individual or entity that lends money or extends credit (the creditor). The debtor agrees to repay the amount borrowed, often with interest, under specified terms and conditions. This relationship is governed by contract law, ensuring clarity on repayment schedules and rights. It establishes trust and legal enforceability, providing a framework for resolving disputes if the debtor fails to fulfill their repayment obligations.