Legal Question in Civil Litigation in California

My girlfriend was recently 'sued' by a former friend of her's. My question pertains to the validity of his claim.

Basic story is as follows:

In early 2009, over a few months, he deposited money via cash deposits into her account. At the time, she had stated she didn't know when or if she'd ever be able to pay him back. He told her at the time that it didn't matter; that what was important was her livelihood.

About a year later (May 2010) he contacted her stating he wanted to be paid back. She told him that she was still not financially stable but was willing to work something out when possible.

Recently (over the past month) he has once again stated he wanted to be repaid. She had told him that she can afford $100/month but that was unacceptable to him. She was willing to discuss it with him over the phone but he kept insisting to meet in person; which she does not want to do.

Through e-mail, he has acknowledge that he was agreeable to her paying him back when it was financially possible for her to do so. (Which she isn't; she is dependant on her brother and me to pay all her bills and provide a decent living condition.)

His claim is for $7500.

This is in Sacramento, CA.

Nothing was ever put into writing and signed. Initially it was by word with a couple of e-mails.

I am aware that CA allows for oral contracts. However, from what I've read, contracts in CA must be in writing if the payment should take over 1 year. Also, I'm confused as to how she can breach a contract that has an indefinite and open-ended repayment "agreement".

Thanks in advance


Asked on 7/01/11, 1:24 pm

1 Answer from Attorneys
Anthony Roach Law Office of Anthony A. Roach

You are referring to what is known as the Statute of Frauds. An oral agreement only comes within the statute of frauds if the terms of the contract cannot be performed within one year, based on the express terms. �The following contracts are invalid, unless they, or some note or memorandum thereof, are in writing and subscribed by the party to be charged or by the party�s agent: (1) An agreement that by its terms is not to be performed within a year from the making thereof.� (Civ. Code, � 1624, subd (a).)

A loan of money, to be paid back when the person can, does not fall within the purview of the statute of frauds, and is not unenforceable. That's because it could have been paid back within the year, and the fact that it was not paid back within the year does not make it invalid.

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Answered on 7/01/11, 2:57 pm


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