In about 2003 my mom made out a loan to a guy who was gonna start his tax business , contract stated my mom would loan him 10s and he had a couple months to pay her the 10s plus 10 more . . its been years since she made the loan , why wont pay up , comes up with excuse my mom is a single parent , and it was her saving now he wont pay up . . is there anything she can do , she has contract . . thank you
Your mother's loan raises two important issues. First, your mother's claim may be time barred. If the contract was written, the statute of limitations would be four (4) years from the date of breach. If the contract was oral, the statute of limitations would be two (2) years from the date of breach. The breach would occur when the borrower failed to pay at the agreed time. It is possible that they made additional agreements to extend the due date or other exceptions to the statute of limitations apply. You might want to speak with an attorney to assist in your mother in recovering the debt. Alternatively, your mother should consider filing suit in small claims. The jurisdictional limit for individuals is $10,000.00.
I agree with my colleague, Mr. Kane, on this one. The statuteof limitations may have run, but if there were other agreements along the way, or if within the last two yearsthe guy has agreed to pay some or all of the loan, and hasn't, and your mom can prove that, there may be a case. Talking to an attorney is the most prudent thing to do.
I agree with my colleagues. There is an issue with the Statute of Limitation (SOL). However, if the man recently told you mom that he now refuses to pay her back, then you can technically say that the "breach" occurred when he refused to pay since he has been promising to pay the last 10 years until just recently in order to get around the SOL issue. Since it is only $10K, it is a small claims matter for the breach of contract. However, your mother can possibly file in limited jurisdiction if she pleas fraud and ask for punitive damages. She should pay an attorney an hour for a consultation. Good luck.
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