Legal Question in Business Law in New York

Loan agreement

I made a loan agreement with a company via US Mail. I dated and signed the copy that was submitted with my check with the understanding that I will get back a signed copy from the company for my records. This I never received back and now the loan was lost. I would like to know if this is a legal agreement. I never recieved a copy of the agreement countersigned by them. I was supposed to receive my money back in June but was told the money is gone. I will not be getting my money back. I feel that since the agreement was not countersigned by the company this agreement is not legally binding and I should recover my money. I am not sure if the area of law I picked is the correct one.


Asked on 5/08/08, 3:34 pm

2 Answers from Attorneys
David Simon Hogan & Rossi

Re: Loan agreement

Did they cash your check? If not, stop payment on it immediately. If so, show them proof of the cashed check and the agreement you sent with it. They were not supposed to deposit that check unless they agreed to the terms of the agreement and their cashing it is some proof of their acceptance of the terms. They must either honor the agreement and you insist on a written acknowledgment of that, or they must return your money ASAP.

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Answered on 5/08/08, 3:44 pm
Nancy Delain Delain Law Office, PLLC

Re: Loan agreement

What do you mean "the money is gone"? Where did it go?

Is this a bankruptcy situation in which the company is the debtor? If this is the case, you would need to file a proof of claim with the bankruptcy court in which the case is filed.

Did you keep a photocopy of the contract you signed? That would be ideal, but a cancelled check would work almost as well as proof.

Mr. Simon is right: if your check has not been cashed, stop payment on it immediately.

For what you wrote, the area of law you picked is indeed correct, it's just that you have left us with many questions.

THE INFORMATION PRESENTED HERE IS GENERAL IN NATURE AND IS NOT INTENDED, NOR SHOULD IT BE CONSTRUED, AS LEGAL ADVICE. THIS POSTING DOES NOT CREATE ANY ATTORNEY-CLIENT RELATIONSHIP BETWEEN US. FOR SPECIFIC ADVICE ABOUT YOUR PARTICULAR SITUATION, CONSULT YOUR ATTORNEY.

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Answered on 5/08/08, 5:31 pm


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