Am I legally obligated to repay a personal loan made between another person and myself if that person died?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Am I legally obligated to repay a personal loan made between another person and myself if that person died?
It was a verbal agreement between us and he had several post-dated checks he never deposited and told me not to worry about it but now that he passed away his adult daughter found the checks and wants me to pay them.
Asked on August 1, 2011 Georgia
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
The problem with oral agreements to perform contracts is two fold. First, it may be difficult to ascertain the terms of the contract if both sides disagree. You need some form of outside evidence to help prove the contract. Next is something known as the statute of frauds. That is a law enacted in each state that says that certain agreement must be in writing to be valid. In this case, and without knowing more, the terms in the amount of repayment would be the checks in the daughter's possession. Do they indicate it was a loan? Could it be inferred (same amount each month)? If the obligation was to take more than a year to repay then the SOF comes in to play. BUT, if there is performance on one side and it is accepted by the other the SOF may not apply. DO the right thing: repay the estate. Your friend did the right thing for you when he was alive.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.