Legal Question in Civil Litigation in California
Breach of Contract & Fraud
A co-worker, I'll call him A, came to me, he said he had a friend named B that needed a loan for $15k and if I helped B, in return B would give me $65k + interest. So I agreed to speak with B. After a 20 minute phone conversation I told B I would help, but I wanted it in writing, B agreed. 24 hours later I met B and gave him $15k cash. B gave me a written contract, but was only for $15k + interest omitting the $50k. B said it was due to a usury law, but it's my understanding that usury is not relevant if money is offered to you. It was not based on me arm twisting demanding X amount of dollars or else. What was suppose to be a 5 day loan, turned into 8 months. The promissary note was only good for 6 months. It expired 2 months ago. I've recv'd not one pymt. B now says the whole thing was a scam, and he is only going to honor the promissory note, not the verbal agreement. My question is: I know I have a Breach of Contract case, but do I also have a case for breach of verbal agreement & fraud? Can I sue for punitive damages? This whole ordeal cost me my credit, my mental & emotional health, and nearly my marriage. I want B to know you just can't do this to people.
3 Answers from Attorneys
Re: Breach of Contract & Fraud
Your written "contract" would likely be unenforcable in a Court. You expected $50K in 5 days! Breach of contract on an oral agreement is 2 years. You will likely get your principal back + interest, if you can prove the verbal agreement. Thanks for your question and good luck.
Re: Breach of Contract & Fraud
I am sorry - let me clarify my prior response. Your oral "contract" would most likely be inadmissible evidence since you have a written contract which differs in terms and which will be the underlying contract since it is written.
Also, B will argue that there is no way he would have agreed to the extra $50K for a 5-day loan!
The Court would strike that portion anyway most likely as unfair and against public policy (or, depending on the relationship between you and B, illegal, and nullify the whole contract!). You are only entitled to the $15K + interest (no other damages). Thanks for your question and good luck.
Re: Breach of Contract & Fraud
Next time, remember that if it sounds too good to be true, it probably isn't true. That's why we have sayings like: "A fool and his money are soon parted." and "A sucker is born every day."
If you get a letter or an e-mail from a government official in Nigeria or some other far-off place saying they need your help to transfer money and would you please provide your bank account information, run - do not walk - away. Once you have been hit by one scam others will target you.
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