Personal Loan/Verbal Agreement

[adiro]

Washington State

Hello,

In June 2008, I loaned a friend $1200 in the form of a cashiers check to pay his rent when he lost his job. He owed me $100 already. We have a handwritten agreement signed by both of us (but not notarized), that $1300.00 is to be paid by Dec 1, 2008. The amount of the loan was contingent on a verbal promise they made to me, to make a minimum payment of $600 by July 1, 2008~to pay my own rent, and otherwise I told them that I could only afford $400-$500 long term. He didn't pay me anything until August 2008 ($450). Until I filed a claim in small claims court on Oct 2, 2008, I had already racked up approximately $1200 in payday loans and checking account advances, late rent fee, and a reconnection fee to restore my gas service, a $1000 personal loan I accepted in late Sept, 2008 to survive my basic expenses (offered by their father when he heard about my situation). I am claiming the $150 balance of the $600 promise/late rent fee/advance and loan fees, and reconnection fee. My claim does not include the actual loan, because it is not due until Dec 1, 2008, and I see that is a separate claim. I have many texts from him saying that he wants to pay me, that I could have all the money from his second job, and have extra money besides the loan. His net income is at least $4000/mo and can pay me something, he just doesn't. Do you think I have a case to sue over this verbal agreement that he broke, and what it has cost me? Do you think that I have a case for the loan in December with a written agreement that isn't notarized?

 

[JETX]

Do you think I have a case to sue over this verbal agreement that he broke, and what it has cost me?

If you can PROVE the loan, yes. As for additional 'costs', no.

Do you think that I have a case for the loan in December with a written agreement that isn't notarized?

Yes... but only AFTER it is due on 12/1/08.

 

[Slammedtgs]

Hello there.
By my understand of contract law, Verbal and Written contracts are both protected equal, at least in this case, under law.

You can do several things.
First of all, any verbal or written contract will be evidence on your part for this case. The verbal will be harder to prove but still can be used in court - verbal agreement are still contracts (assuming both parties are capable of making a contract - legally)

Lets focus on the 1200 dollars, you have in writing an agreement to pay 100 percent by 12/1/2008 and a verbal agreement to pay 50% by 7/1/2008. So far, you have a breach of contract by your friend for failure to pay as agreed upon by your verbal agreement

Since you have a breach of contract, you can request full repayment of the loan, or only the part in default (I would request all of it myself)

You should be able to seek damages incurred as a result of his default. interest on any advances, reconnection fees, bank over drafts, ect. You cannot sue for the principle of the loan your dad gave you. You can also sue for attorney and court fees. It is prudent of you for obtaining a secondary loan to prevent your further default your financial responsibilities. Usually, mitigation of damages is required for recovery of additional expenses.
The law states that innocent parties should be placed in the economic position they would have enjoyed had the contract been preformed (him repaying you)

However, keep in mind a few things. Suing your friend will possibly end your friendship (although they don't seem to be very good a friend anyways). You can sue, and win and still not receive the money - if your friend doesn't have it. (though it seems that he does). Also, don't stretch the truth - only claim reasonable losses you incurred and be sure you have the proper documents with you at court. Also, try not to focus too much on your financial position.. Simply seek repayment of the loan, and damages incurred as a result of breach of contract.

Good luck to you.

Washington State

Hello,

In June 2008, I loaned a friend $1200 in the form of a cashiers check to pay his rent when he lost his job. He owed me $100 already. We have a handwritten agreement signed by both of us (but not notarized), that $1300.00 is to be paid by Dec 1, 2008. The amount of the loan was contingent on a verbal promise they made to me, to make a minimum payment of $600 by July 1, 2008~to pay my own rent, and otherwise I told them that I could only afford $400-$500 long term. He didn't pay me anything until August 2008 ($450). Until I filed a claim in small claims court on Oct 2, 2008, I had already racked up approximately $1200 in payday loans and checking account advances, late rent fee, and a reconnection fee to restore my gas service, a $1000 personal loan I accepted in late Sept, 2008 to survive my basic expenses (offered by their father when he heard about my situation). I am claiming the $150 balance of the $600 promise/late rent fee/advance and loan fees, and reconnection fee. My claim does not include the actual loan, because it is not due until Dec 1, 2008, and I see that is a separate claim. I have many texts from him saying that he wants to pay me, that I could have all the money from his second job, and have extra money besides the loan. His net income is at least $4000/mo and can pay me something, he just doesn't. Do you think I have a case to sue over this verbal agreement that he broke, and what it has cost me? Do you think that I have a case for the loan in December with a written agreement that isn't notarized?

 

[Slammedtgs]

The first date of performance was 7/1/2008, this is when his friend was to pay, his friend failed to pay thereby breaching the entire contract.

If you can PROVE the loan, yes. As for additional 'costs', no.


Yes... but only AFTER it is due on 12/1/08.

 

[JETX]

The first date of performance was 7/1/2008, this is when his friend was to pay, his friend failed to pay thereby breaching the entire contract.

Okay, let's once again educate the ignorant....

There is a specific WRITTEN contract for payment "to be paid by Dec 1, 2008". There is then an unsupported claim of a "verbal promise they made to me, to make a minimum payment of $600 by July 1, 2008".

If you had ANY legal education or knowledge, you would KNOW that a verbal agreement (absent SUBSTANTIAL evidence of its existence) will NEVER, EVER 'trump' a written contract.
Simply, there is NO provable breach... until after the date shown in the WRITTEN contract.

 

[racer72]

Do you think that I have a case for the loan in December with a written agreement that isn't notarized?

The fact it is not notarized is totally irrelevant. All the notary stamp would prove is that the partys that signed the contract are who they say they are. It has nothing to do with the legality of the contract. I have notarized a couple hundred document the past 8 years, I have never read the items I have notarized. Show me a valid picture ID, make sure your signature is close to what is on the ID and I will affix my stamp. Catch me on a good day and I will do it for free too.