Tuesday, July 27, 2010

Borrowed money, legal advice needed!?

Its a long story but in short my ex-partner and myself borrowed 拢2000 from his parents for an architect to draw plans up. He asked them for the money, it was a joint decision to go ahead with it. We have since split up. I have agreed to pay back half the money to his parents, and told him he needs to pay the the other half. He is adament that I should pay the full amount back as I have the planning permission. But I have no intention of using it, now hes gone the extension isnt required. I would sign something saying I will never use it. I dont see why I should have to pay it all back when neither of us have gained anything, we both wanted to borrow it, in effect it was a joint mistake so surely we should both pay up?? Am i being totally selfish and unreasonable?Borrowed money, legal advice needed!?
Here's the legal position in England and Wales. It all hinges on whether the loan was intended to be a binding agreement or a friendly arrangement in the family. If your ex's parents wanted to sue to reclaim the money, they would need to prove that you all intended it to be a binding agreement.





If the Court decided it was a family arrangement, they wouldn't want to get involved. If your ex's parents got 拢1,000 back from you they should count themselves lucky.





Now let's suppose it was a binding agreement. Who did they lend the money to? There would be a strong presumption that they lent it to their son, not his one-time partner. So again getting 拢1,000 from you puts them in pocket.





In the unlikely event that a Court should decide that the money was lent jointly, you are both responsible for ensuring that it is repaid. If their son actually has 拢2,000 - he'd be the obvious person to claim it from and again you're being generous by paying half. It's only if he had no resources that they could claim the full amount from you. By the time it got that far, they will have spent considerably more than 拢2,000 in legal fees.





So stop worrying - my bill for 拢5,000 is in the post.


Borrowed money, legal advice needed!?
No you both borrowed the money and therefore are both liable. Would he be saying the same if you had jointly borrowed it from a bank?





His parents would have to sue you in the small claims courts. If it goes this way you would have to prove what you did pay back, I am not sure how you are paying your half back but if it is cash I would be asking for receipts
The deal was made with his parents. You pay your half which is fair. Make sure you keep track on your payments to his parents like canceled checks and/or reciepts.
Who signed the contract? thats what will define who owes the money





edit - ahh i see borrowed from parents well id suggest you speak to them and ask them what they think
As this loan was made in good faith by his parents to both of you, I see no reason why you should pay all of the monies back yourself. You need to contact his parents, let them know you are not going forward with the plans, you appreciate the good faith loan given by them and you will be delighted to pay back your half of the loan to them. Ask them to sit down with you to draw up a payment plan that is amicable to you and them for your half of the monies owed and be sure to get it signed and even notarized if you like. Do not go into it with them about the other half owed unless they ask (I doubt they will though, and do not be negative about their son!). They should be happy to know that you are a good person who pays her debts. They will then need to go after their son for the other half and you will have, in wiriting and with a contract drawn up by them and you, the amount you owe them and how you plan to pay it, should it ever get to a court. This will relieve you of the other half of the loan amount and by all rights, that man is a crumb to even suggest he is not responsible for the other half. Good thing you did not go through with the marriage if he is the type of person who wriggles out of his responsibilities and would even short change his own parents for his own selfish needs! Be sure to get this all in writing with all of your signatures, that way there will never be a question later down the road. I wish you the best of luck in your life endeavors, you sound like a nice young lady with a great head on your shoulders!
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