Q: Is partial repayment of a loan in an oral agreement proof a loan existed and balance must be repaid?
After not speaking to her parents for five years a daughter phoned her parents to say she was getting a divorce due to abuse. Due to the immediacy, in an oral agreement, the parents lent the daughter retainer fees for her divorce. Repayment was due after the divorce was finalized. The daughter dropped divorce proceedings one week later. The daughter instructed her lawyer to refund monies not used to the parents.The daughter via text message promised parents to repay the balance. She returned to her husband and now claims the loan was a gift. The daughter severed all communications with the parents before repaying the balance. She now contends the loan was a gift in her eyes and does not need to be repaid. What legal basis can the parents use to collect monies owed?
A: There will be a presumption that the money was a gift, but it will be your word against hers. I do not know what your existing relationship is with your daughter, but taking a family member to Court to sue for a debt can cost more than it is worth in both emotional stress and legal fees.
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