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Just so that we are on the same page, what legal information are you seeking, exactly? In other words, what is your legal question? Are you asking who it is that you need to sue to recover the money?
Yes, that is correct. Since nothing was signed, and suddenly a partnership, rather than the person, was supposedly the recipient, I don't know where the law kicks in here.
If there was no paperwork, then it would be the person that you loaned the money to that you would need to sue to recover the monies. If you want to cover all of your bases, you can also name his business as a defendant as well since he did tell you that the loan was for the business.
Please let me know if this has answered your question or whether you need any clarification.
The business is what he is using to hide behind. He hit me with that one a few days ago. In such a case, the loan would have been made to he and his partner. Now he is asking for copies of the paperwork and a bill breaking down the interest cost. Again, this was a personal favor. I explained what the interest cost would be.
He knows the loan was made to him. He can't pay it back, so he is bringing the "business" (that I knew nothing about) into the equation. Therefore, he can state that it was a loan to the business, not a personal loan, and that his partner(s) are accountable as well. That's not the case. I didn't loan to them, but he swears I did, and we have no paperwork....
He is stating that since it is a debt, I can send a bill to the partnership and it will go into collections. Much more complicated to sue the partnership as the logistics change; the partnership's procedure is to receive a breakdown of the interest cost, and several other factors. I was simply trying to help a friend in need....and it has blown up in my face...
I'm not sure what it is that you are asking for clarification on. If the loan was to him, you would sue him. However, you already know that he is going to use as a defense that the loan was made to the business and not him, personally. There is no paperwork and so it will be your evidence against his. Therefore, to cover yourself, you want to sue both him and the partnership and then the court will look at the evidence and determine whether there was a loan (versus a gift or an investment) and determine who owes it.
Mr. Kennett has repeated exactly what I told you. I think there may have been some miscommunication. Your question was whom do you sue. My answer to you, which Dave Kennett agreed with, is that you would sue the person to whom you gave the money to. However, if you already know that he is going to argue that you loaned the money to the business, you can simply add them on as defendants. I think you are making it more complicated than necessary. It is a simple contract case. The loan is the contract and him not paying you back is the breach.
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