Legalinfomd : Hello. I will answer your question.
Legalinfomd : The verbal agreement you made with the person, as verified by the "loan" notation on the check, is sufficient to have formed a binding obligation for him to pay back the money. The money will not be treated as a gift.
Legalinfomd : You should send the person a letter informing him that you are demanding repayment of the loan, and that if he fails to pay within 10 days, you reserve the right to pursue available remedies.
Legalinfomd : If he fails to pay, or at least agree to terms you are satisfied with (such as resuming work on your farm, you may file suit and obtain a judgment.
Legalinfomd : The problem is that it sounds as if he did not agree to pay you interest or collection costs if he failed to pay.. As a result, there is little incentive for him to repay the loan sooner rather than later.
Legalinfomd : The fact that the check was paid to a third party is irrelevant. Loan proceeds were disbursed for his benefit. It is the same as when one borrows money to buy a house. The bank pays the money to the seller, but the borrower is liable for repayment of the debt.
Legalinfomd : I hope this information is helpful. Please be sure to leave a positive rating for my response so that I will be credited for my time.Thank you and good luck with your matter.
how about the car that was purchased with my check?do i have any recoursethere?
Legalinfomd : Unfortunately you do not. You would have had to get the person to sign a security agreement, and filed a security interest lien with the motor vehicle administration at the time of titling.