Legal Question in Business Law in New Jersey

personal business loan - legal or not legal

During the month of September/00, I entered into a business arrangement with a close friend. My friend had agreed to lend me $60,000 to start-up my own towing business. The proposed closing date for this venture was to be 10/11/00. That meeting never took place, no written contracts had been signed up to this time. On 10/25/00, my friend had written me a personal check in the amount of $60,000, with the written contract to follow in a few days. The very next day, 10/26/00, I recieved a message on my answering machine, not to deposit that check because the fund were not available. I was asked to sign reciept for this check, which states that the money was to be a loan, the amount, the date the check was written, and the check number, and both of us put our signatures to the paper. What steps should be taking from here concerning this matter.


Asked on 11/02/00, 8:40 pm

2 Answers from Attorneys
Bruce Gudin Ehrlich, Petriello, Gudin & Plaza Esqs.

Re: personal business loan

When you inquire as to "What steps should be taking from here," what would you like to have happen? Are you concerned with your liability?

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Answered on 11/19/00, 7:15 pm

Re: personal business loan - legal or not legal

I would reccommend sending a letter to your "friend", certified mail return receipt requested, confirming that he informed you that there were insufficient funds in the account and confirming that the loan is void. The letter should also request that your friend either (a) execute the bottom of same confirming his agreement with same or (b) request that he send you a letter confirming that this loan is void.

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Answered on 11/17/00, 12:12 pm


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