debt owed question

The legal elements of a valid gift are transfer of the gift, donative intent by the giver, and acceptance by the receiver. A gift is irrevocable.

So, for example, if I give you a puppy from a litter of mutts, and you then train it and it wins the top prize at the top dog show and the dog is now worth a Million bucks, I have no grounds to demand the dog back because I gave it to you, it was a valid gift and it's irrevocable.

The friend has another problem called the "statute of frauds", which generally says that a contract for anything over $500.00 MUST be in writing. He needs a written note signed by you acknowledging your obligation to pay him back in order to have a valid claim for repayment.

Finally, I do not know all of the facts and circumstances behind your brief question. If there were other things going on or services or goods being promised then this purely theoretical answer may or may not apply.

This answer is provided for informational purposes only. True legal advice can only be provided in an office consultation by an attorney licensed in your jurisdiction and with experience in the area of law in which your concern lies.

I have dealt with these types of situations before and there is always some trace of evidence of money exchanging hands. This "gift" may in fact be a gift, but considering the sum of money and other situational factors this "gift" may be a loan or considered an loan under a theory of unjust enrichment or what is called Quantum Meruit by a court of law.

The fact that there was never a written piece of paper does not mean that there isn't a contract. A court may view this as an oral agreement. Statute of frauds, in my opinion, does not apply in this situation since it sounds like you received cash and not goods.

Courts has hesitant to find that person A would generously give person B almost $20,000 without it being some kind of agreement or contract. But without more facts from your specific situation it would be impossible to tell. But if you had made any promised to repay or had made small repayments of this debt you will likely wish to contact an attorney.

Sincerely,

Jared W. Pierce, Esq.
Attorney and Counselor at Law