Hopefully there are some lawyers who visit here or at least someone who knows the legal system a little better than myself. If a personal loan is given to someone without a promissiory note, can the loaner recover that money. It was for a purchase of a car, and there is a check that was cashed in the debtors name. Any suggestions or advice is greatly appreciated.
Legal Advice
- Thread starter CTown Sports
- Start date
I just called one of my buddies that is a lawyer... and he said Yes... He needed other facts like how much it was... what kind of check was it...
Thank you, it is close to 7500 and was a credit card cash advance check which i have a copy of. Again this has the debtors name on it and was cashed by the debtor.
Well... thats good you have a copy of it... but he wants to know... was the loan a personal loan? For a buddy or something?
He is guessing thats why there is no promissiory note.
Any kind of interest involved in this?
He is guessing thats why there is no promissiory note.
Any kind of interest involved in this?
yes was a personal loan and I had requested interest at 10% but again nothing in writing, they made 1 payment but in cash so I have no real record that it was from them. Yes I know bad decision all around, just feeling out my options, I really appreciate you taking the time to answer me.
no problem.. he was busy at the time i talked to him.. .but he said find a lawyer and have him talk to the guy that owes you... pretty much try to scare him
thank you. I would like to know if there is any substance to my claim though, before I even start with a lawyer. I dont think I qualify as pro-bono client haha.
haha... i can understand that...
No friends that are lawyers?
Hell there's millions of them aroudn town here.. Is it a friend that owes you? I would resort to the legal side as a last ditch effort if it was...
Just have a lawyer give he/she a call and tell them whats up... scare em about garnishing wages and all that yada.
No friends that are lawyers?
Hell there's millions of them aroudn town here.. Is it a friend that owes you? I would resort to the legal side as a last ditch effort if it was...
Just have a lawyer give he/she a call and tell them whats up... scare em about garnishing wages and all that yada.
Most states have three catch all claims, for the just doesnt seem right situation.
The first is quantom meruit.
The second is promissory estopple. If he promissed he would pay you back.
The third and most likely is unjust enrichment. Your friend has been unjustly enriched, why would you just give him the money. This covers all types of situations were there should have been a contract or promissory note.
The first is quantom meruit.
The second is promissory estopple. If he promissed he would pay you back.
The third and most likely is unjust enrichment. Your friend has been unjustly enriched, why would you just give him the money. This covers all types of situations were there should have been a contract or promissory note.
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you forgot one.
4. A bat to the fawking head.
you seem to know more about this than me...
I am no lawyer... or should be giving legal advice..
but isnt an oral contract just as good as a written one?
I am no lawyer... or should be giving legal advice..
but isnt an oral contract just as good as a written one?
hate to pipe in out of ignorance, but the deadbeat could argue it was a gift? Goodluck, and I hope you get a judgement against him. But even if you do, he may not pay. Sorry you got screwed by a "friend".
An oral contract is not even close to a written contract. Most terms of an oral contract are barred by the Statute of Frauds.
His defense is gift, however it doesnt pass the straight face test and that is exactlly what unjust enrichment is there for, otherwise such simple things as getting a hair cut or having your lawn mowed, you could argue you dont have to pay because its a gift.
I do not practice contract law, however I would think a strongly written letter would get the job done in this case.
What state?
His defense is gift, however it doesnt pass the straight face test and that is exactlly what unjust enrichment is there for, otherwise such simple things as getting a hair cut or having your lawn mowed, you could argue you dont have to pay because its a gift.
I do not practice contract law, however I would think a strongly written letter would get the job done in this case.
What state?
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the state of unconsciousness.
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the state of unconsciousness.
boy the good old days :00hour
I'm surprised that BeantownJim hasn't piped in on this subject yet. I personally like option 4 as well :nutkick
Thoughts . . .
1. An oral contract in your situation is certainly enforceable and fairly common.
2. Unless the other party has some very persuasive witnesses prepared to lie on his behalf, I doubt you will have difficulty establishing for a fact finder (probably a judge) that this was a loan (why would you make a gift?) and there was some mutual expectation regarding repayment, and there has been a breach of the borrower's promise. Beyond that, you've got hurdles.
3. Small claims jurisdiction would be helpful, but $7500 probably exceeds the limit. Is the entire loan balance accelerated because of a delinquency in repayment? Some specific or reasonable interest? Etc . . . Collections on a judgment are never routine or efficient or even likely. If it can be had, some resolution (a compromise that leaves you with less than you should really get but guarantees you something) short of a protracted adversarial confrontation is . . . usually wise.
4. If it's obvious you need to take the next step and not just threaten to take the next step, then you should definitely employ the services of an attorney that can assess your prospects for getting paid and then act accordingly on your behalf. Never easy to just "find" a helpful advocate in your situation, either, IMO.
GL
1. An oral contract in your situation is certainly enforceable and fairly common.
2. Unless the other party has some very persuasive witnesses prepared to lie on his behalf, I doubt you will have difficulty establishing for a fact finder (probably a judge) that this was a loan (why would you make a gift?) and there was some mutual expectation regarding repayment, and there has been a breach of the borrower's promise. Beyond that, you've got hurdles.
3. Small claims jurisdiction would be helpful, but $7500 probably exceeds the limit. Is the entire loan balance accelerated because of a delinquency in repayment? Some specific or reasonable interest? Etc . . . Collections on a judgment are never routine or efficient or even likely. If it can be had, some resolution (a compromise that leaves you with less than you should really get but guarantees you something) short of a protracted adversarial confrontation is . . . usually wise.
4. If it's obvious you need to take the next step and not just threaten to take the next step, then you should definitely employ the services of an attorney that can assess your prospects for getting paid and then act accordingly on your behalf. Never easy to just "find" a helpful advocate in your situation, either, IMO.
GL
Thank you for the information. There has been some words said and although they have not been delinquent on the second installment of the repayment I feel there is going to be a problem and want to know what remedies I have. You said there is not a good chance of recovering the money, however I thought I read somewhere that I may be able to garnish wages, or even put a lien on the automobile that was purchased with my money. I think the services of an attorney will be needed regardless.
i'm not a lawyer but sounds to me you gave a friend an unsecured loan without any contract to back it up. even if you had a contract what are you going to do if he doesn't pay? it's an unsecured loan :shrug:
you can spend the money to take him to court, he won't show up and you get a judgement. a judgement and $.50 will get you a cup of coffee.
the only way he pays back on a judgement is if he has good credit but if he had good credit he wouldn't have gone to you for a 10% personal loan.
you can spend the money to take him to court, he won't show up and you get a judgement. a judgement and $.50 will get you a cup of coffee.
the only way he pays back on a judgement is if he has good credit but if he had good credit he wouldn't have gone to you for a 10% personal loan.
