A friend paid off her boyfriend's car loan (it was repo'd) with her money. They signed a loan agreement that said he would pay it back (don't know the complete details). Is he legally bound to pay it back?
2006-11-06 03:43:32 · 4 answers · asked by alparkranger 2 in Business & Finance ➔ Credit
If he signed an agreement with her stating that he would pay back the money she spent to redeem his car, then yes, he is legally obligated to uphold his signed agreement. She can take him to court for default of that agreement if he doesn't keep his word. Then he would have a court judgment against him as well as the contractual obligation. After obtaining a court judgment, she could then place a lien on his property to collect the debt or even force him into forclosure or bankruptcy depending on what assets he has available balanced against his ability to pay.
2006-11-06 03:55:44 · answer #1 · answered by rac 7 · 0⤊ 0⤋
A contract in law is enforceable as long as there is adequate evidence of that contract and it was correctly worded. She should approach her local small claims court and fill in the forms to get a judgement if he defaults on their agreement. The problem is that if he has no assets it may be difficult to enforce payment.
2006-11-06 11:49:22 · answer #2 · answered by Anonymous · 0⤊ 0⤋
yes, in most states this is a legally binding contract. Even if the agreement is not notorized this could be used in small claims court.
2006-11-06 11:46:07 · answer #3 · answered by Anonymous · 1⤊ 0⤋
It depends on the agreement they wrote, signatures, etc. She probably either needs to talk with an attorney or depending on the amount, file in small claims court.
2006-11-06 11:47:40 · answer #4 · answered by Margaret K 3 · 0⤊ 0⤋