Recovering Unpaid Verbal Contract Loans in Etobicoke: Your Legal Options Explained by a Civil Lawyer

In the province of Ontario, you can take steps to recover money lent without a written contract. Contacting a civil lawyer and considering your legal options after default is crucial. A civil lawyer can advise you about preserving the applicable limitation periods. Here are key points to consider:

Verbal Agreements: Verbal agreements can be legally binding. To sue someone for breach of an oral loan agreement, you must prove that a binding agreement was in place. There are three elements to a legally binding contract:

Offer

One person must make an offer to the other party.

Acceptance

The other party must accept the terms of the offer.

Consideration

The agreement must involve an exchange of consideration, or something valuable, between the parties. Consideration usually takes the form of money, though traditionally, even a peppercorn was sufficient.

Proving Your Case

Proving your case for an oral loan agreement is often more complicated than a written one. The “burden of proof” is on you when there is no written agreement. You must show that the amount you are claiming is correct. The following documents could help prove your case:

• Bank records to show the loan amount transferred and any payments by the borrower.

• Documentation of collection attempts: You should first send letters, emails, text messages, or social media messages to the person who owes you money.

Going to Court could be a last resort if you cannot reach a mutually beneficial agreement with the borrower. It is always best to talk to a civil lawyer to understand your options based on your specific circumstances.