Legal Question in Credit and Debt Law in Missouri
Can I be sued for Truck payments??
In April 2007, my boyfriend needed a new vehicle. He had no credit, so the loan is 100% in my name. The title is in my name too, with his name as beneficiary (Title On Death). We broke up in November 2008. I drew up a ''contract'' stating when payments to me were due. He has never made a late payment.
I decided that I do not want to deal with him for 3 more years.
The last provision in the contract I drew up is: MyName can, at any time, terminate the portions of this Agreement pertaining to the truck. If and when this option is exercised, MyName will give HisName 30 days to obtain an alternate vehicle. The truck must be surrendered to MyName either on or before the 30th day. The truck must be in good working order.
I am thinking about exercising this option, but my concern is whether he can sue me for 2 years of payments. Can he??
2 Answers from Attorneys
Re: Can I be sued for Truck payments??
Yes. He will likely get the truck or two years of payments, based upon the contract you described.
Good Luck
Re: Can I be sued for Truck payments??
He may have equitable rights in the truck as a result of having made the payments. If you truly don't want to deal with him, offer him an opportunity to buy you out. Find out what the payoff is on the note. Tell him that he has one of two options: (1) buy the truck for the amount of the payoff on the note, he takes the truck, everything's cool; or (2) he surrenders the truck, you sell the truck and pay off the note, and split any profits with him.
Although your contract gives you the right to call the contract at any time, he might very well have a good equitable argument if he were to hire a lawyer and take you to court. The amount of money, however, is probably going to make it difficult for him to do.
Since the truck is in your name, I assume you have the insurance on it? If not, then you may have a real problem if he is ever in an accident with the vehicle, since he cannot insure something he doesn't own. Also, you retain the liability to pay personal property tax on the vehicle. I am guessing these are things you didn't think of.
So now would be the time to limit your liability and give him the opportunity to buy the truck. After 2 years, his credit should be good enough that he can come up with whatever the amount of the loan is, and if not, then take the truck, sell it, and limit your own losses.
Good luck.
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