What constitutes a loan versus a gift?
I have a friend who was in debt last year to the tune of $30,000 She was speaking with a friend of hers about it. This friend, a very wealthy person, wrote her a check for $30,000 with no strings attached. My friend told this person that she wasn't sure if or when she would ever be able to repay him. He told her not to worry about it giving her the impression that this was a gift. He has now come back to my friend and asked for the money back, money she doesn't have. Is she legally obligated to pay this back?
Answers:
There has to be a promise to pay. Because she offered to pay him back and his answer was not "you don't have to pay me back" but don't worry about when, then she is going to have to pay. However, a judge will determine a "reasonable time" since there was no time limit. Contrary to belief, there is not need for a written agreement to enter into a contract.
He told her not to worry about it, which implied that there was no expectation of repayment. Therefore, it was a gift.
There was nothing in writing so I guess there's no legal obligation anywere. She didn't agree to pay him back, and he never suggested when he gave her the money that he wanted it back, so if he's suing her for it I'd say she's got a fair argument.
Nope, it was a gift. Unless there is a signed promissory note, your friend got over to the tune of 30 large. wow
No contract = no repayment. You can gift 12,000 per yr. legally and anything above is taxed. That's it!
I've seen quite a few court shows with this kind of thing on there, as long as she didn't sign any paper agreeing to pay it back and has NOT attempted to pay anything back (indicating that she felt it was a loan) then it technically is a gift! In my opinion anyway, if it was a loan there should have been some sort of written agreement.
If nothing was put in writing. No
I think it just depends if there was an understanding that it had to be paid back. loans mean you will pay back, gift means you will not. sounds like a gift that wouldn't mind being paid back...
not legally but thats alot of money and if they're really your friend maybe you should pay them back
or your friend should whatever
In my very UN-professional opinion I'd give it a strong 50/50. If I was to guess this "friend" that loaned/gifted the money was hoping to get a little bit of something of the vertical kind in return. If it went to court the question that would be asked is, "do you REALLY think somebody would just give you 30 grand?
It's a gift.
the problem is, without witnesses or otherr evidence she will have a HUGE problem proving that.
As long as there was no legal contract between them, she is not obligated to pay the other person back
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