Can a verbal loan contractbe changed unilaterally by the lender?

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Can a verbal loan contractbe changed unilaterally by the lender?

I got a loan for school purposes from a friend in 2006 for 2 years ending up around 47k. There was no written agreement or any paperwork signed. It took me 2 years to find work and; I found a job at the end of 2009. However, what right now is barely enough to make meats end. He has contacted me and wants to sign a written agreement; he is setting it up with his lawyer. I don’t feel comfortable signing this because he has changed the amount to 51k and wants a certain amount of interest which this was not verbal agreement we had.

Asked on September 5, 2010 under Bankruptcy Law, Florida

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

(1) Any contract, whether oral (which is the better terms for a "verbal" agreement) or written only be changed with the conset of both parties; either party can ask for or request a change, but the other party needs to agree to it.

(2) If there was no paperwork, how do you know what the terms were? If you come to litigation, it will be, in the absence of other evidence, your word vs. yours; and since loans generally have interest, it is likely that if he states there was interest, that that will be credible.

(3) If the money was due by now, the lender could certainly request changes (more principal, interest) in exchange for not simply calling it due immediately. Again, without anything in writing, if the lender says you should have repaid by now, it may be difficult to disprove that.


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