Legal Question in Civil Litigation in Pennsylvania
Repayment of personal loan from a privately-owned business
I have borrowed 12,000 dollars from a friend's business with his permission to put a downpayment on a house. Recently the friendship has been terminated. I have not signed any documentation saying that repayment of the monies is necessary. By law, am I still required to pay back the monies, moral questions aside?
2 Answers from Attorneys
Re: Repayment of personal loan from a privately-owned business
Moral questions aside, yes.
Re: Repayment of personal loan from a privately-owned business
The issue is governed by the law of contracts. There are 2 ways you can be legally obligated to repay a debt. 1) you can sign a legally enforceable contract which contains definite terms of repayment and reflects a bargained for exchange. 2) you can receive a benefit from someone and be unjustly enriched such that you must pay for the benefit.
The other concern I have is whether this money was legally provided to you. If not, there are other issues.
I trust this answers your question but feel free to call or E-mail on a free initial basis.
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