Legal Question in Credit and Debt Law in
Friend defaulting on loan given on handshake
Approximately 2 and a half years ago I lent a friend $25,000 cash. I did not make him sign anything it was a handshake deal. He was to pay me back within a year but has only made two payments of $1,000 cash each. How can I collect on this debt since I have no paperwork? What options do I have? Can I get him to sign something now that will stand up if we go to court? Is there anything at all I can do?
2 Answers from Attorneys
Re: Friend defaulting on loan given on handshake
What you have is an oral contract in which you exchanged 25,000 dollars in return for your friends promise to pay back the money. At this point if your friend is willing to put the debt in writting then a new contract would be formed in which your friend memorializes the debt in exchange for your willingness to not pursue court action immediately. Otherwise, you can bring suit to enforce the oral agreement. I offer free consultations.
Re: Friend defaulting on loan given on handshake
Attorney Johns' previous response is completely accurate. However, in the future, never ever make deals that are worth a lot of money without a written contract.
While you can sue to enforce the oral agreement, your burden of proving that there is actually an agreement is much more difficult than proving the terms of an agreement that is written. It is possible to do, but it is difficult.
You should contact an attorney who can file a lawsuit for you for the amount owed to you.
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