Q: Can I get someone to collect on a loan if it was just a verbal agreement?
A: A loan generally does not need to be in writing to be enforceable under Michigan law.
A: Yes. Verbal agreements are still considered contracts in the eyes of the law. That said, there are limitations, such as: contracts involving real estate must be writting; contracts to co-sign for a debt must be written; depending on the law in your state, contracts involving money over a certain amount must be written. The bigger problem is your being able to "prove" the terms of the contract. Absent agreement on the essential terms of the contract, (amount, payment dates, interest, etc) the court could find there was no meeting of the minds and, therefore, no contract. Then you are faced with having to proceed on other legal theories such as quantum meruit, promissory estoppel, etc. Depending on the amount and complexity, you are best served by hiring a lawyer or at least getting a low cost/free consultation with a lawyer to help you sort out your options. Good luck to you.
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