Home Q&A Forum Can a repayment agreement be enforced if it was made verbally and not in writing?

Contracts

Repayment Agreement

California

Asked on Dec 19, 2024

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.

Answers from 1 Lawyer

Answer

Contracts

California

Answered 517 days ago

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.

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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?

5.0 (1)

Laura H.

Answered Jun 28, 2024

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.

Read 1 attorney answer>

Contracts

Development Agreement

California

Asked on Jan 17, 2022

Are these clauses safe to sign into in an NDA?

A company approached me to help them develop a prototype of a software application, so they can secure a round of funding. To this end, they gave me an NDA to sign, after which they would divulge their design artifacts for my review. Good so far. But the NDA has these terms which I am concerned about: Intellectual property: At any point during and/or as a direct result of the signing of this Agreement when you create something for the purpose of fulfilling work for (co), said creation is considered work-made-for-hire and is owned by (co). This includes copyrightable material, trademarks, patents (a whole list), whether developed by you alone of in collaboration with anyone else (I am alone). The company owns everything. I got it. Now coming to another point: Indemnification Provision: if (co) of a (co) partner gets sued as a result of your work, you agree to step in and pay for all relevant costs, unless (co) has expressly instructed you in writing that you carry out the task for which (co) or its partner was sued While I would never knowingly carry out something illegal or attract lawsuit, as an individual I have limited knowledge. And besides, I feel this will leave me personally open to legal liability for indefinite period of time, even if someone else takes my code in continues development on it later Are my concerns legit? How should this be altered (if it should) so it is fair to me (if this is unfair)?

View Cameron S.

Cameron S.

Answered Feb 18, 2022

These are not appropriate provisions for an NDA. An NDA should only cover the disclosure of confidential information - not development and assignment of intellectual property. You should not be transfering ownership of IP (or anything you develop) under an NDA. It should also not include an indemnification provision. Both of these clauses are appropriate for a development agreement or a professional services agreement. Putting this aside, if this were a development/professional services agreement, then you probably would want to protect any background technology or pre-existing works that you already own prior to the agreement (and would license the (co) rights to this background technology if necessary). And, you should not be indemnifying unless you intentionally used third party materials or knowingly stole another party's work to complete the development for (co). This is because it is not feasible for you to know what trademarks or patents are out in the world. If what you develop infringes, that should not be your responsibility/risk. You probably aren't getting paid enough to take on that risk. Copyright requires knowing that you stole copyrightable material, so the knowledge qualifier described above means that the (co) is protected under the indemnification for copyright infringement issues caused by you.

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Contracts

Software Agreement

California

Asked on Oct 6, 2022

Can a SaaS company terminate and agreement with a client?

We are a SaaS company that wants to get out of a relationship with a client. What are our options?

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4.9 (8)

Christopher M.

Answered Oct 7, 2022

Typically your options are going to be controlled by the SAAS Agreement or other contracts between you and the client. There should be a section in there called “Termination” or something similar. Really, it would require a review of the contract to give more specific advice on this one.

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Contracts

Purchase Order

California

Asked on Oct 18, 2022

Contract versus PO?

I'm working with a client who refuses to sign our contract document while mentioning that the PO would suffice for that purpose. I already signed the contract and sent it back to the client that I'm working with, but they didn't sign it so far and refuse to sign it. But according to them, they will send PO. Is the PO legally binding to them to make the payment? Would the PO really suffice against the contract that I signed?

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4.9 (8)

Christopher M.

Answered Nov 8, 2022

Annoying as this answer it, it really does depend. Some purchase orders (especially in the government contracting world) automatically become contracts once they are accepted and signed. If this is the other sides normal mode of operating it is not unheard of for them to be reluctant to accept a different contract in case it creates different or conflicting terms. At the end of the day there is nothing inherent in a PO that would mean it cannot serve as a binding contractual document, it just depends on the language in the PO.

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Contracts

Employee Separation Agreement

California

Asked on Jun 27, 2023

Pros & cons of employee separation agreements?

I am a small business owner and I am considering offering an Employee Separation Agreement to an employee who is leaving the company. I want to understand the pros and cons of this type of agreement so that I can make the best decision for my business.

5.0 (1)

Gagandeep K.

Answered Jun 30, 2023

There are several reasons for using an employee separation agreement - it can be used to protect confidential information and IP, obtain general liability waiver for certain legal claims (e.g., wrongful termination), offer an employee certain benefits and severance pay, and include additional provisions (e.g., non-disparagement clause so the employee cannot spread negative information about the company, return of company equipment, etc.). Just as an employer is not legally required to offer a severance agreement, an employee is not required by law to sign a severance agreement. However, an employee may be more likely to sign a reasonable, balanced severance agreement. You can read more about severance agreements here: https://www.contractscounsel.com/t/g/us/severance-agreement/11#toc--circumstances-for-offering-severance-

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Can a repayment agreement be enforced if it was made verbally and not in writing?

Answers from 1 Lawyer

Dolan W.

Adam J.

Lori B.

Scott S.

Alexander M.

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