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A "friend" bought $600 of tools and a used car from us. He…

A "friend" bought $600 of...
A "friend" bought $600 of tools and a used car from us. He sold the car for $3000. He gave us $2000 and kept the rest. He has made no effort to pay the balance in the last 9 month. There is no signed contract, but there is a full list of items sold, as inventoried by another party and verified by him (but not signed). He has made 1 $25 payment. I have a recent text message where he acknowledges he has items from us and owes us the money. He currently is not working but will be getting a job. He doesn't stay unemployed for long. Please advise.
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Answered in 1 minute by:
3/26/2018
legalg
legalg, Attorney
Category: Business Law
Satisfied Customers: 13,714
Experience: General Practitioner. Research Attorney
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Hello! I will be reviewing your question and posting a response momentarily; if you have any follow up questions please respond here. Thanks!

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I am sorry to hear that you have been betrayed; what state is this in please?

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Customer reply replied 3 months ago
Wisconsin
Customer reply replied 3 months ago
No phone call necessary. Thanks.

There are several ways in which a contract can be formed:

1. oral contract- basically a verbal promise. Testimony and witnesses can help establish an oral contract, as well as partial performance (partial payment of funds due, partial services rendered, goods delivered, etc)

2. implied contract-the court reviews the actions of the parties to see if there is an implied contract - similar to the evidence in #1 above.

3. written contract- this is the "traditional contract" where it is drafted and then signed and dated by both parties; it can also exist from a compilation of texts, emails, writings, etc.

Now to be a binding contract there must be:

1. offer

2. acceptance

3. meeting of the minds (intent to contract)

4. consideration (value given/received; a change in one's legal position).

Small claims is appropriate for disputes under $10,000 - please see:

https://www.wicourts.gov/publications/guides/smallclaimsguide.htm

So a promise to repay a loan can result in a judgment for the amount still owing. The judgment creditor can then collect by seeking a wage garnishment, or levying bank accounts and other property.

Since a judgment affects one's credit report often a demand letter prior to filing can result in the person paying the debt, to avoid litigation.

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Customer reply replied 3 months ago
How do I write a demand letter.

This is a different state but it still prepares a demand letter for money and can be used as a guide:

http://www.courts.ca.gov/11145.htm

Otherwise one can find templates on line; basically it states the demand: what the basis for the demand is (breach of contract) and the money owing; then it generally requests money by X date (usually 5-10 business days) and if not received by then the sender may then file a lawsuit.

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Customer reply replied 3 months ago
I think he is moving to Wyomong soon. WHat effect will this have.

Generally the person needs to be served in the state where one wishes to file the legal proceeding; so if the defendant may move the sooner they are served the better;

then the court may exercise jurisdiction so if they fail to appear the court may enter a default judgment (automatic judgment for plaintiff based on defendant's non appearance) and then the new state court can enforce that judgment.

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Customer reply replied 3 months ago
If he moves and we file in Wyoming, there WE would need to be in Wyoming to go to court?

Yes, that is correct; which is why most people will try and file in their home state before the defendant moves.

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Customer reply replied 3 months ago
OK. THanks for now.

You are most welcome; good luck to you on this.

Take care.

If no further questions kindly rate 5 stars to help maintain my customer satisfaction score-thanks!

legalg
legalg, Attorney
Category: Business Law
Satisfied Customers: 13,714
Experience: General Practitioner. Research Attorney
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