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owing money to a friend
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a friend offered to lend me the money to pay off my mortage arrears as i faced repossesion, i accepeted now she wants all her money back and i cant raise it to give to her where do i stand legally
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Your friend was good enough to lend you this money in the first place. You can understand why she wants it all back if you have only managed to pay her �500 back in 12 months. I donot know how you stand legally - I am sure your friend can fight this through the small claims court so you do need proper legal advice. But morally - you should feel guilty for lending this much money off a GOOD friend (cos only goods friends lend this much money out) and not attemptin to pay her back. YOu have still got a house over your head - were would you have been without your frriend.
You want to stop looking for a getout claus and pay this person back - you were quick enough to take the money in the first place.
You want to stop looking for a getout claus and pay this person back - you were quick enough to take the money in the first place.
Owing money to a friend will concern, should the matter go to court, the issue of a valid formation of a contract. Without a contract and the rights granted by it there can be no successful claim.
Contractual formation can occur verbally but relies on four main criteria being met; offer, acceptance, consideration and an intention to create legal relations.
The first two criteria in your case would be satisfied: �do you want to borrow some money� (offer) �Yes please� (acceptance) The issue therefore relates to whether or not you have provided consideration and there is an intention to create legal relations. Of most importance is the intention to create legal relations.
Domestic (non-commercial) contracts have a presumption against an intention to create legal relations; whilst this can be rebutted, the courts will assume that by your friend lending you any money there was no intention to create a contract upon which they could rely, for lack of an intention to create legal relations.
As such whilst your friend may no talk to you it would be difficult for her to take you to court and assert a verbal contract unless she said words to the effect of �by lending you this money I intend to create a legal binding contract�. Moreover should the matter be taken to court it would be somewhat of a �he said she said� and proof of having a valid contract will be difficult to provide.
Contractual formation can occur verbally but relies on four main criteria being met; offer, acceptance, consideration and an intention to create legal relations.
The first two criteria in your case would be satisfied: �do you want to borrow some money� (offer) �Yes please� (acceptance) The issue therefore relates to whether or not you have provided consideration and there is an intention to create legal relations. Of most importance is the intention to create legal relations.
Domestic (non-commercial) contracts have a presumption against an intention to create legal relations; whilst this can be rebutted, the courts will assume that by your friend lending you any money there was no intention to create a contract upon which they could rely, for lack of an intention to create legal relations.
As such whilst your friend may no talk to you it would be difficult for her to take you to court and assert a verbal contract unless she said words to the effect of �by lending you this money I intend to create a legal binding contract�. Moreover should the matter be taken to court it would be somewhat of a �he said she said� and proof of having a valid contract will be difficult to provide.
It is by no means always the case that written agreements about lending money include references to creating legal relations, and yet they are generally treated as being valid and enforceable. I think any fair minded judge would manage to imply into the arrangement you made an intention to be bound by it and would therefore be willing to grant a County Court Judgement in favour of your friend.
You would have the opportunity to put forward an instalment payment offer based on your financial circumstances and - unless your friend objected to the offer - this would be included in the CCJ. Provided you then paid the amount set by the Court each month your friend could do nothing more, but if you failed or were late with any payment he/she could go back to Court and get a charging order on your house.
You would have the opportunity to put forward an instalment payment offer based on your financial circumstances and - unless your friend objected to the offer - this would be included in the CCJ. Provided you then paid the amount set by the Court each month your friend could do nothing more, but if you failed or were late with any payment he/she could go back to Court and get a charging order on your house.
HI sorry this isnt an answer to your Q but i really need help with a contract law problem Question im doing:
The question is:
"Daniel agrees with 5 friends to go for a meal. He books a table for 6 and agrees the menue and pays �120 for the party of 6. On the night some friends didnt turn up and now daniel wants to sue" Explain with case law and reasining whether daniel can sue the people who did not turn up (10 marks)
Any help at all would be gladly welcomed!
The question is:
"Daniel agrees with 5 friends to go for a meal. He books a table for 6 and agrees the menue and pays �120 for the party of 6. On the night some friends didnt turn up and now daniel wants to sue" Explain with case law and reasining whether daniel can sue the people who did not turn up (10 marks)
Any help at all would be gladly welcomed!
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