my husband and i are taking over payments on a friends car. how would we write up a contract for that?

Answer 1

Are you taking over ownership also? If so, just write a simple bill of sale. You are buying the car from your friend. That means that you should get a loan, pay him whatever amount you agreed on, and he should pay off his loan. That's simplest, and the cleanest and best way to handle it.

If your friend wants to keep the car in his name, but you send the payments to the finance company or bank, DON'T DO IT. You're putting yourself at financial risk. When the car is paid off, he could claim that he paid for it, and everything belongs to him. Your credit record wouldn't reflect that you made the payments instead of him. And if he gets in a wreck and totals the car, he gets the insurance money, not you. If he doesn't have insurance on the car, you just lost everything you paid on his car.

Get a loan. Transfer ownership to yourself. Register the car in your and your husband's name. Take your friend out of the deal completely after that. It's easiest, it's best, it'll protect you in the long run.

Answer 2

First of all, this is NOT LEGAL ADVICE. You just want to make sure that everything is legal and valid.

I don't quite understand the question- are you taking possession of the vehicle? So, you are wanting to transfer ownership? Or are you just paying on the car note for your friend?

If you are taking over payments and taking possession of the car, then you can start by looking at the title of the car. Well, actually, your friend does not have the title, correct? Well, you will need to contact the dealership first. I presume that the dealer still has the title. They will first want to check your credit rating, to insure that you can afford to make the payments on the vehicle. You need their permission first.

I agree with the first response. Contracts must be very clearly written. You need to have four elements present in the contract in order for it to be legally binding:

1. Licit object (that is, legal object)

2. Possible object

3. Determined or determinable object

4. Will (consent)

I would check with a certified attorney first- get assistance writing the contract, and make sure that everything in the contract is clear and understandable.

I presume that you and your husband are both adults, and have contractual capacity. Do you both have contractual capacity? In other words, you have to be of sound mind and body, and capable of understanding the nature of your obligations.

Does that make sense?

To clarify, let me explain the meaning of the elements of a legal contract: (listed above)

1. Licit object- this just basically means that the object in the contract (in this case, a car) is legal.

2. Possible object- this means that the object must be free of liens or legal notes.

3. Determined or determinable object- it must be clarified in the contract as to what, exactly, the object is.

4. Will (consent)- this portion of the contract proves, in writing, that all parties listed to be privy of the contract agree to its terms.

Like I said before, make sure everything in the contract is clear and specific. Make sure all names, addresses, etc. are correct and specific.

Good luck!

Answer 3

THROUGH A LAWYER!!!! Been there, done that.