Q: I gave someone £5,000 as a business loan. What is my legal recourse for getting the money back without a contract?
Jun 22 2009
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If you have no contract or agreement in writing you face a very difficult task. You first of all have to prove that you lent the individual the sum. If you paid them by cheque that should provide evidence of an amount leaving your account and going into theirs. If the loan was in cash, you have to find evidence of the transaction. Even with this evidence, you will have difficulty proving it was a loan and not a gift.
You do not say whether you have asked for the money back and what the response was to this request. That might give an indication as to what your next steps might be. Your problem is that you might be throwing good money after bad if you employ a solicitor to fight the case.
You might like to try a claim through the Small Claims Court.
Your local Citizens Advice Bureau might be able to offer some further advice.
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