If I lent a friend a $25,000 business loan and he promised in writing to pay me back.but didn’t, can I sue him?
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If I lent a friend a $25,000 business loan and he promised in writing to pay me back.but didn’t, can I sue him?
If yes, how would I go about doing that? He promised in an email to repay me.
Asked on January 31, 2013 under Business Law, Florida
Answers:
James Jones Jr / The Jones Firm, PLLC
Answered 11 years ago | Contributor
You may be able to sue under a breach of contract theory (you had a valid contract and the contract was breached, resulting in damages), depending on the terms of the loan you made with your friend. Were the terms of the loan reduced to writing or was it an oral agreement? Also, when did you loan your friend the money and when did you enter into the agreement? These questions need to be answered in order to determine whether you can bring suit.
How do you go about suing your friend depends on a number of factors. You must consider Florida's statute of limitations, which governs the time in which you can bring a lawsuit against your friend. You must also consider the statute of frauds, which requires certain contracts to be in writing.
You also must consider the terms of the agreement to determine how you can go about collecting the $25,000 that you say your friend agreed to repay. For example, the agreement may contain an arbitration clause requiring you to arbitrate your claim, rather than filing a complaint in court and "litigating" the claim.
I suggest you speak with an attorney as soon as possible to discuss your options.
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