loan between friends

Ask a Lawyer


Country: Canada
State: Ontario

My friend gave me money to buy a car and help pay for school when I was having problems making ends meet.He is now saying that he wants me to repay it as it was a series of loans and not a gift. He is threatening to take me to court but I have never signed a promisary note or even a verbal agreement to repay as I do not have the money. I am not sure what to do and can he sue me when I did not even know that I was apparently "borrowing" this money?


If it was a gift then you need not pay except as you wish to do so--he will have to prove it was a loan and that will not be easy to do.
References in periodicals archive ?
Family Mortgage: a private loan between friends and family secured by real estate and used toward the purchase of a home, allowing borrowers to deduct interest payments just as if they had borrowed from a bank.