Draft Repayment Agreement in Alaska for Business
Draft
Repayment Agreement
Alaska
Business
Business
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Repayment Agreement
California
Can a repayment agreement be enforced if it was made verbally and not in writing?
I recently loaned a significant amount of money to a friend in need, and we agreed on a repayment plan where they would pay me back in monthly installments. However, we did not put this agreement in writing, and it was purely a verbal agreement. Now, my friend is refusing to make the payments, and I'm wondering if I have any legal recourse to enforce the repayment agreement even though it was not formalized in writing.
Dolan W.
I'm so sorry about your situation! My name is Dolan. The answer is yes. Under California law, a breach of contract occurs when one party fails to fulfill a legal duty the contract created and causes damages for the plaintiff. (California Civil Jury Instructions Number 303.) The measure of damages is the amount that will compensate the aggrieved party for all the detriment caused thereby or likely to result therefrom. (Cal. Civ. Code § 3300.) Parties can also seek '"specific performance" of the agreement under section 3388 of the civil code. This applies regardless of whether the agreement was written or done orally. Typically, the aggrieved party is entitled to be returned to the same position they were in before the breach. My recommendation? Consider sending a demand letter. I have a template I drafted that you can use here - https://www.contractscounsel.com/t/document-form-checkout/119 Best of luck to you! So you can send this in any way want. It can be text, email, certified mail, or in person. I usually send letters via email because it’s faster and cheaper.
Repayment Agreement
Massachusetts
Can a repayment agreement be enforced if there was no written contract or agreement?
I recently borrowed a significant sum of money from a friend to cover some unexpected medical expenses. We agreed verbally that I would repay the loan in monthly installments over a period of one year, but there was no written contract or agreement. Unfortunately, due to unforeseen circumstances, I am now facing financial hardship and am unable to make the agreed-upon payments. My friend is threatening legal action to recover the loan. Can they enforce the repayment agreement even though there is no written contract?
Laura H.
If the final payment was scheduled for more than one year after the agreement was made, Massachusetts law generally requires a written document. Texts or emails are considered writings that may be used to fulfill this requirement. However, there may be an exception if the parties began performance. A local attorney can review the evidence to provide specific advice.