How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Zachary Your Own Question

Zachary
Zachary, Attorney
Category: Business Law
Satisfied Customers: 3814
Experience:  Internationational Commercial Attorney
Type Your Business Law Question Here...
Zachary is online now
A new question is answered every 9 seconds

I entered into a contract with a friend. He took out a loan

Resolved Question:

I entered into a contract with a friend. He took out a loan and gave me the money to run my small business. I agreed to pay back the loan as such:

The Borrower agrees to lend $41,995.00 to the lender for the purchase of SDM located atXXXXX City, State. The Borrower is to pay the Lender $41,995.00 in installments of $525.00 per month for eighteen months, after eighteen months Borrower is to pay the balance due by paying Lender 28% of his profits per month until the balance is paid in full. The first monthly loan installment is due on 7/10/2009.

Here's my issue: I have been making payments of $525 monthly since 7/2009. I sold the store by the end of 2009, and am still making monthly payments, but do I have to? There is no provision in my contract in regards XXXXX XXXXX happens if/when the business is sold, so am I still obligated to pay back the full amount of this loan? Do you think that would include interest?
Submitted: 1 year ago.
Category: Business Law
Expert:  Zachary replied 1 year ago.
Hi,

Thank you for your question.

Although the payment terms of the loan do not address what would happen if you sold the store, this does not mean that you do not owe the balance of the loan. You do still owe the remaining balance on the loan. However, a loan has to specifically include a provision for charging interest and if this loan did not include any reference to interest, then you do not owe interest.

That being said, selling the store has violated the conditions of the loan. The lender has the right to sue you because you sold the business but did not pay off the loan with the proceeds.

That is something to consider. Does the lender know that you sold the store?

-ZDN
Zachary, Attorney
Category: Business Law
Satisfied Customers: 3814
Experience: Internationational Commercial Attorney
Zachary and other Business Law Specialists are ready to help you
Customer: replied 1 year ago.


yes, he is aware that I sold it. Thank you very much for your response.

Expert:  Zachary replied 1 year ago.
If the lender does know, then you should think about talking to the lender about signing a new deal which clarifies your situation.

You said that he was your friend, so maybe he would consider lowering the amount due each month. On the other hand, trying to renegotiate the contract could lead to the inclusion of an interest provision.

In the end, if your friend is ok with you continuing the $525 monthly payment and is not charging you interest, then you are really coming out on top. A loan with no interest charge is "free" money.

Let me know if you have further questions or want to discuss more.

Best Regards,
ZDN

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Last | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
 
 
 

Meet The Experts:

 
 
 
  • Law Pro

    Attorney

    Satisfied Customers:

    1426
    20 years experience in business law - sole proprietor, partnership, and corporations
< Last | Next >
  • http://ww2.justanswer.com/uploads/LA/lawpro/2012-6-25_171315_PT206740s.64x64.jpg Law Pro's Avatar

    Law Pro

    Attorney

    Satisfied Customers:

    1426
    20 years experience in business law - sole proprietor, partnership, and corporations
  • http://ww2.justanswer.com/uploads/DC/DCraneEsq/2012-8-14_14436_DCrane.64x64.jpg MShore Law's Avatar

    MShore Law

    Attorney

    Satisfied Customers:

    1233
    Drafted Negotiated and/or Reviewed Thousands of Commercial Agreements
  • http://ww2.justanswer.com/uploads/FL/FLAandNYLawyer/2012-1-27_14349_3Fotolia25855429M.64x64.jpg FiveStarLaw's Avatar

    FiveStarLaw

    Attorney

    Satisfied Customers:

    1162
    25 years of experience helping people like you.
  • http://ww2.justanswer.com/uploads/dkaplun/2009-05-17_173121_headshot_1_2.jpg Dimitry K., Esq.'s Avatar

    Dimitry K., Esq.

    Attorney

    Satisfied Customers:

    1142
    Run my own successful business/contract law practice.
  • http://ww2.justanswer.com/uploads/ohioatty/2009-1-22_185545_me.jpg J.Hazelbaker's Avatar

    J.Hazelbaker

    Attorney

    Satisfied Customers:

    393
    Experienced and trained in the area of business law.
  • http://ww2.justanswer.com/uploads/scottymacesq/2009-6-10_221523_small.jpg RGMacEsq's Avatar

    RGMacEsq

    Attorney

    Satisfied Customers:

    393
    Licensed Texas General Practice Attorney
  • http://ww2.justanswer.com/uploads/BA/barristerinky/2012-6-10_22423_office.64x64.jpg Barrister's Avatar

    Barrister

    Attorney

    Satisfied Customers:

    301
    13 years practicing attorney, MBA