I am sorry to hear this;
So a contract can be either oral or written; so if the parties had an agreement that one would obtain a loan and the buyer of the car would make payments to that person, that would be a binding contract. Proof of prior payments, along with proof that the person had the car insured, can help prove that the arrangement was intended.
An agreement must contain four essential elements to be regarded as a contract. If any one of them is missing, the agreement will not be legally binding.
3. Intention (meeting of the minds)
4. Consideration (fair value exchanged)
For breach of a contract, there is a material breach (goes to the very heart of the matter) and an immaterial breach (money damages will help compensate the plaintiff).
In cases of material breach, the party not in breach may revoke their acceptance, so goods/payment are returned.
For immaterial breach, the plaintiff is compensated by the defendant paying for the damages (ie cost of repair).
So normally for nonpayment of a contractual arrangement, the court will order the person to pay the lender- essentially issuing a judgment for the full amount owing (balance) plus costs incurred such as interest charges, attorney fees, and court costs.
Small claims is appropriate if the balance is less than $7,000 - otherwise the general civil court would be the proper venue.
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Information provided is for educational purposes only. Consultation with a personal attorney is always recommended so your particular facts may be considered. Thank you and take care.