Were you making payments on a car which you had purchased when the person decided to gift it to you? If so, the written contract would still be in effect. What you need to do is draft a new written contract, and there has to be consideration. Nominal consideration is fine. So maybe offer them $20 in exchange for the new written contract that way it's valid.
If I'm misunderstanding and it was a "gift" that came with a written contract saying you'd make monthly payments was made at the same time, then it really isn't a gift and the person can demand that you make payments.
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Why do you think the car was gifted if there is a contract saying that you must make payments? Do you have proof that it was a gift and that they forgave the payments? Does the certificate of title state a lien? Contact an attorney up there, and get an opinion after the contract and other documents are reviewed.
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Sounds to me like you need an attorney. A written contract can not be changed by oral agreement. You would need something in writing proving that the written contract was canceled and that the car was gifted to you. As to the monthly payments, was the car owned outright by your friend or were the monthly payments going to financing of the vehicle? If the freind had not finished paying for the car the monthly payments will still have to be made by someone. We you given the title to the vehicle? There are a lot of issues here that need to be addressed. I suggest you consult with an attorney.
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