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Marcus Parker
Marcus Parker, Attorney
Category: Business Law
Satisfied Customers: 460
Experience:  Experienced in corporations, LLC, partnerships, etc., formation and operation
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I have a question regardin the re-payment of a verbal ...

Customer Question

I have a question regardin the re-payment of a verbal agreement I had with a potential investment in my business. As I needed assurances about his seriousness about investing, I asked for a $50K downpayment immediately. This took 6 wks to secure from him. I have the date of our first meeting, and the dates of his deposits to me. He was to bring me the reminder of the $450K within a week, and as a result, two potential investors were declined - hence the need for the deposit and to know he was serious. As of last week, I gave him a deadline of Friday to pay in full, or the deal would be off. He told me he would have the funds by the Wednesday before, but again, nothing materialized. The purposes of taking on a 49% partner was to pay off all loans and interest. Due to multiple promises/delays, many thousands of $ have been incurred with loan payments that should have been paid off, + the interest they incurred. Can I subtract 49% of the downpayent, or do I need to pay it back at all.
Submitted: 9 years ago.
Category: Business Law
Expert:  Marcus Parker replied 9 years ago.
From what you have told me, and since there is no written agreement, I believe that you are obligated to refund the entire $50,000 downpayment.
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Customer: replied 9 years ago.
Reply to XXXXX XXXXX's Post: Does this not qualify as a verbal agreement, which in essence is a verbal contract?
Expert:  Marcus Parker replied 9 years ago.
It looks more like a verbal agreement to make an agreement. This is a lot of money. For deals of this magnitude, there are a lot of details which should be specified and which, I suspect, were not. Was there, for example, a provison for a refund of the down payment should he be unable or unwilling to pay the balance? What I am telling you is that, should he sue you for the money, a court would probably agree with him that the verbal discussions lacked sufficient detail to form a complete contract.