fraternal loan, verbal contract

[hanul12274]

Hello and help!
I am a student in Virginia, my brother lent me $1500.00 with the intent looking for a car. I ended up having to use the money for maintenance on the vehicle I am driving now and for school. We agreed on a payment schedule. I have maintained that payment schedule. I even offered to pay back as much over the agreed bi-monthly amount as possible and available. :confused He is angry that I did not use the money to buy a car and is now threatening to take me to court. I know this is probably a matter for small claims, but there wasn't a forum for it. Does he have any bases for a case? I would appreciate any advice. Thank You,
brennan

[This message has been edited by hanul12274 (edited June 29, 2000).]

 

[JETX]

What basis is his claim for taking you to court? Was this agreement in writing? Does it specifically say that the loan was to purchase a car?

1) Breach of contract? You say you are making payments, no breach.

2) Failing to buy the car? Unless the loan agreement specifically says that it was for a car purchase (was the car to be collateral?), he has no basis.

3) Specific performance? Again, is the car purchase a requirement of the contract?

Sounds like another prima facie example of ALWAYS GET IT IN WRITING! and GET ALL THE DETAILS!!!

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Steve Halket
Judgment Recovery of Houston
[email protected]

 

[hanul12274]

Thank you for replying.
Actually nothing was in writing. He wants to base his case on a verbal agreement to purchase a car with the money. Like I mentioned before I have and continue to make payments on schedule. He also said that as the creditor he is the lien holder, but I am still trying to figure out what he has a lien on. The car was never supposed to be collateral. So, there is no basis for a case?
Should I even bother to get an atty? I really appreciate your comments.

 

[Tracey]

Even is you had agreed that the car would be collateral for the $1500, he couldn't put a lien on the car. Liens must be in writing & signed. Unless the agreement was that you'd use the money to buy a car & if you didn't buy a car you'd return it, he hasn't a leg to stand on. Write him (certified, return receipt), explaining this. If he persists in going to court, show the judge a copy of the letter & ask for sanctions.

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This is not legal advice and you are not my client. Double check everything with your own attorney and your state's laws.

 

[hanul12274]

Thank yoou very much for your responses to my problem. You are all very generous. Thanks again.