2007-05-20 10:52:39 · 9 answers · asked by appleblossom 1 in Politics & Government ➔ Law & Ethics
Yes. A verbal loan agreement is a contract and oral contracts are enforceable. The problem lies in proving the terms of the contract. It is not enforceable if it involves real estate. That violates an old law called the "Statute of Frauds."
2007-05-20 10:57:55 · answer #1 · answered by David M 7 · 2⤊ 0⤋
They are enforceable in most states unless the amount is large enough to trigger the Statue of Frauds. That is a law requiring certain types of contracts to be in writing. The real problem is PROVING the loan. If you need the loan enforced, the other party is not going to admit they owe you money. Without a written contract, it is difficult to prove they do.
2007-05-20 19:07:46 · answer #2 · answered by STEVEN F 7 · 0⤊ 1⤋
Every TV Judge show says, "Always get it in writing!"
A verbal agreement can only be upheld if the borrower admits that they agreed -- or if they have acted like they were paying it back.
Example: You loan a friend $100 and they agree to pay it back, $20 at a time, for 5 months. If they make at least ONE payment back, then that is usually considered acknowledging the loan and the responsibility to pay it back.
When you say, 'pay me when you can', or 'when you have the money', you can kiss that loan good-bye. Nobody 'ever' has enough 'extra' money to pay back a loan like this!
2007-05-20 17:57:45 · answer #3 · answered by Sue 5 · 0⤊ 1⤋
A contract can be formed verbally if there was a promise for a promise (I promise to loan you 300 for 20 days and you say I promise to pay you back in 20 days). But certain contracts have to be in writing, (over $500, land sales, etc) So yes it depends on size of the loan.
2007-05-20 17:57:57 · answer #4 · answered by esquire9 2 · 0⤊ 1⤋
Many verbal agreements are legally binding, there is a certain dollar value involved ( I want to think it's less t han $500 ). I'm not sure about loans specifically.. but I'd imagine it would be.
By why you wouldn't get something on paper is beyond me.
2007-05-20 18:04:05 · answer #5 · answered by Anonymous · 0⤊ 1⤋
Without witnesses, NO.
It then becomes a he said<-->he said situation where one is lieing.
A verbal loan agreement without written documentation is only temporary and the parties cannot be held to it.
2007-05-20 17:56:39 · answer #6 · answered by Suze 6 · 0⤊ 2⤋
Not enforcable by law, but morally the person should repay the loan
2007-05-20 17:56:25 · answer #7 · answered by auburn 7 · 1⤊ 2⤋
It's not worth the paper it's written on.
2007-05-20 17:55:31 · answer #8 · answered by Anonymous · 0⤊ 2⤋
no
2007-05-20 17:54:56 · answer #9 · answered by porcerelllisman q 4 · 0⤊ 2⤋