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christhelawyer, Lawyer
Category: New Zealand Law
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Some years ago I was loaned $15,000 by a very close friend

Resolved Question:

Some years ago I was loaned $15,000 by a very close friend to help me purchase a property. There was no formal contract drawn up as the other party was extremely wealthy and didn't want a Lawyer involved.
Recently I had to sell the property due to suffering a disability and had to take a substantial loss on the property. I entered into a contract to pay $1,000 to my friend as payment for the original loan as I had already given her considerable support and done considerable work for her over several years without payment.
Both of us agreed to the sum and a contract was duly signed by us both.
The other party is now contesting this as unfair some six months later. The other party has had a Lawyer threaten me with court action if I don't pay a considerably larger sum of money back to the other party within 7 days.
What are my options?

Submitted: 1 year ago.
Category: New Zealand Law
Expert:  christhelawyer replied 1 year ago.


christhelawyer : HiWelcome to JustAnswer. My first response will follow shortly. Please feel free to follow up if anything is not clear
Customer :

OK

christhelawyer : If you have a contract which says the payment of $1000 and the work undertake settles the debt, then this is pretty strong. If they sue they cannot say the contract is unfair just because they have changed their minds. This would have to be resolved in the Disputes Tribunal in any event
Customer :

Her Lawyer states " Clearly the document you proffer cannot be used to defend the claim against you"

Customer :

I thought that once both parties agreed to and signed a contract, it was legally binding.

christhelawyer :

Without seeing the document it is hard to comment, but I would think if the terms of the contract are clear then it would be binding. Do you know why the lawyer says the document cannot be used?

Customer :

He gives no reason other than his client states that she never agreed to accept the $1000 even though she was given ample opportunity to seek legal advice and signed the document of her own free will.

Customer :

He goes on to say that the matter will need to be resolved in court but that he has little doubt it will be resolved in his clients favour.

Customer :

It sounds as if she has just got upset because I have moved away and won't bow down to her demands for a relationship.

christhelawyer :

I think you may be on fairly strong grounds. You should respond to the lawyer by saying that he can file in the Disputes Tribunal and you will argue the contract is good and binding.

christhelawyer, Lawyer
Category: New Zealand Law
Positive Feedback: 98.1 %
Satisfied Customers: 16296
Experience: LLB MMgt FAMINZ 32 years qualified as lawyer
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