Can I file for the full amount of a loan of a broken contract in small claims court or do I have to wait until all payments are missed?

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Can I file for the full amount of a loan of a broken contract in small claims court or do I have to wait until all payments are missed?

I’m in a situation wherein I loaned someone $1,000 for the purpose of buying a vehicle. Since the loan the person has made it clear she will not follow the terms of the verbal agreement at the time of the loan and is refusing any type of communication. At last contact, she said she was not actively pursuing the purchase of a car. The verbal agreement called for payments of $200 per month. So far, 1 payment has been missed. I wish to know if I can claim the full $1,000 in small claims on the grounds that the original contract was broken (recipient not using the money for a car)?

Asked on March 21, 2012 under Bankruptcy Law, Ohio

Answers:

Hong Shen / Roberts Law Group

Answered 8 years ago | Contributor

If the verbal agreement is such that she should use the money to buy a car, then you do not have to wait for full payment before suing her to get your money back.


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