[Question] Validity of loan contract.

[Mal Hannes]

The back round to this question is:

Friend is in casual relationship with a girl. She is in car accident and needs a new car.

He and her dad decides to help het her get a car. Stupidly he signs a loan agreement with her dad for full amount of the car payable over 12 months.

Car is then bought and registered into her dad's name. So the dad put the money up and the car is registered into the dads name.

They brake up days later.

Now the dad is suing him for full amount.

I don't think contract is valid due to him never receiving anything. The dad paid the money but the car is in dad's name.

He is willing to pay a shortfall if car is sold. But to pay for the car and the dad keeps it is not right.

Any weekend comments before I can get to lawyers on Monday?

[AmithS]

Now the dad is suing him for full amount.

Did he receive actual legal papers?

[Mal Hannes]

No just a letter of demand.

[AmithS]

No just a letter of demand.

In his personal capacity or via a lawyer?

[Mal Hannes]

Lawyer.

[AmithS]

Hmmm, I would get a lawyer involved. If its a legal letter through a lawyer they must feel they have a case. Also I think there is a certain time frame of which to respond to the letter of demand.

Keep in mind someone is also going to end up being liable for the legal costs!