Breach of loan agreement
I would like to find out what recourse one has in an event where a verbal loan agreement was reach with a partner who later decided to fall back on a promise.
I had engaged in an agreement where I was financially sound and took out a loan on behalf of a partner who had committed to service the loan repayments on a monthly basis. This went on flawlessly as per agreement for well over a year until they suddenly decided to stop paying and all costs incurred due to the defaults, now all fall on me.
This has left me in a position where I stand to lose my assets including my home due to the financial constraint this has landed me. We never had any written agreement, all I have is a paper trail of all related conversations (mobile text and email) and bank statements and references supporting the allegation of him consenting to servicing the loan repayments taken on his behalf.
Please advise what options I have available to legally proceed in hope to have him once again live up to his promise before my life is further negatively impacted.
Your assistance is highly appreciated
Hello. Sorry about your predicament. It’s a common arrangement between friends and family that often goes awry. Verbal agreements count as legal agreements. And all communication count as evidence of the agreement. You can sue them for your losses arising out of their breach of the agreement. You should calculate all your losses and get a lawyer to send them a letter of demand. Some lawyers will agree to sue on a contingency basis is ” no win, no fee ” where they will take a percentage of what they recover. You can also in your suit ask for ” specific performance “, i.e. Compel them to fulfil the agreement or pay damages. All the best.