Legal Question in Civil Litigation in New York
documentation needed for gift?
My band has a fan who wishes to make a gift check to me for several thousand dollars. It is understood the money will be used to record a new cd. The fan understands the likelyhood of making this money back is close to none and has expressed that is why it is a gift and not an investment. We verbally agree if the band does well we would repay the fan.
Assuming we move forward with this and there is no documentation that it is a gift (except the check itself saying ''recieved as gift'' on it) and the band makes little or no money, can this person turn around in a few years and demand I pay them back? Am I personally liable?
2 Answers from Attorneys
Re: documentation needed for gift?
Why do you think contracts are written? Do yourself a favor, put the terms in writing, you'll sleep better at night.
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Re: documentation needed for gift?
If you can't otherwise put it in writing make sure you keep a copy of the check with the notation "received as gift". Hopefully in the donor's hand. You should be okay but it is always best to reduce even a gift to writing so there are no misunderstandings down the road.
You don't have to add the future clause about the possible success unless your friend requires it and then it isn't a gift after all.
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