My friend borrowed money but does not want to pay back. It was a &#39;buddy promise&#39; with no pay back time stipulated
<p>My (used to be) friend borrowed some money from me but does not want to pay back. It was a 'buddy promise'. I have SMS, Email &amp; Bank Transfer slips as evidence. Since it was done between buddies, no repayment time frame was stipulated.</p>
<p>I have compiled written binding agreements in Text messages and email. The only thing missing is the time to repay.</p>
<p>It has been more than a year now since he borrowed the money from me and I am thinking of suing him with all the evidences I have. The sum of money would put it under the <strong>small-claims-court</strong> category</p>
<p><strong>Do I have a strong case against him?</strong> My concern is that it was a 'buddy' contract with no time frame for payback stipulated.</p>

<p>If you had an agreement that amounts to a contract, it is binding even if it was informal. However, if your agreement was not in writing, it might be hard to prove.</p>
<p>You can easily prove that you transferred money to the other party. But can you prove that it was a loan an not a gift? And even if it is agreed to be a loan, if no repayment time was specified, what says that the debt is due now? Was the agreement really for a loan repayable on demand? The court would have to determine what your real contract was, or what contract can be implied from the actions of the parties.</p>
<p>Also, if you are in a common-law jurisdiction, there could be a question of what consideration there was for the loan. Without consideration, there is no valid contract in such a jurisdiction. Perhaps a promise to repay could be treated as sufficient consideration.</p>
<p>Small-claims courts do deal with unclear verbal contracts on a regular basis, but the outcome will depend on the facts of the case, and on the details of local law.  It might be wise to consult a local lawyer with small-claims experience. A single consultation should not be too expensive.</p>
<p><strong>In response to comment</strong> If the &quot;written binding agreements&quot; include a statement from the other person that this is a loan, and a promise to repay it, you are in a stronger position than I had thought from the original question. The question for the court would be, since there was no due date agreed, what is a reasonable date to impose. The court might treat it as a loan repayable on demand, or specify some particular date for repayment.</p>

contract-law small-claims-court litigation borrowing