Written Contract

secretj_2

Hi, wasnt too sure which forum to put this message.

I have lent my boyfriend a large sum of money to help pay his bills while he finds a job. I have drawn up a written contract stating how much he has borrowed and will be paid back and we both have signed this.

I am sure he will pay me back but just incase I thought I should find out where I stand.

If something happens to him who is responsible to pay back the money?would it be his family?

Thanks for any help given

WHA

He remains liable whilst he is alive, unless he becomes bankrupt.

Upon his death, his estate will be liable - if he has no assets, or if his total liabilities exceed his assets, then you may get nothing. His liabilities are payable before any residue can be paid to his beneficiaries.

I don't think that his family can ever become liable as it is not their debt.

Bossyboots

Did you get someone independent to witness both your signatures?

WHA is correct. The debt never passes to anyone else and if he dies without paying it back and with insufficient estate you will not get it back.

pin

WHA wrote:

He remains liable whilst he is alive, unless he becomes bankrupt.

Upon his death, his estate will be liable - if he has no assets, or if his total liabilities exceed his assets, then you may get nothing. His liabilities are payable before any residue can be paid to his beneficiaries.

I don't think that his family can ever become liable as it is not their debt.

Law of limitations. Liability only lasts for 6 years for written contracts and 12 years for contracts signed by deed from date of breach for both.

secretj_2

Thanks for the replies everyone!

No the contract wasn't witnessed by anyone else but me and my boyfriend does it matter if anyone witnesses the contract as long as its signed and agreed by both?

zzzLazyDaisy

pin wrote:

Law of limitations. Liability only lasts for 6 years for written contracts and 12 years for contracts signed by deed from date of breach for both.

This is only partially correct. The six year limitation period runs from the date that the debt falls due. So if the agreement is that the money will be repaid on, say, 1st Jan 2010, the limitation period runs from that date. Similarly, if the debtor defaults, but later confirms the debt (eg, confirms in a letter that the money is still owed) the 6 years starts again from that date.

So it is a good idea to set a date in the original agreement for repayment of the money and, if the money has not been repaid by that date, to get written confirmation from the person owing the money that the debt is still owed, and setting a new date for repayment.

Hope this helps.

secretj_2

Thanks zzzLazyDaisy! All help has been useful thank you