friend won't pay as we agreed?

hi -- i've been stressed about this. i sold my small business to a friend effective March 2004, and we agreed she wouldn't have to pay in full until March 2007. the original agreement was also that she pay as much as she can per month, which she stopped doing after the first two months, claiming an inability to, and i acquiesced.

i have a strong feeling she will say she does not have the money, though she is still operating the business, and has been continually upgrading her home. does anyone have suggestions as to how to handle this? thanks for your time!

Update:

thank you for your responses! wow, that was quick. and, oh, yes, i neglected to state: we drew up a written agreement, which we both signed and dated. i have the original, and yes, i can go back to my bank about the two checks she had sent before, to show proof.

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  • 1 decade ago
    Favorite Answer

    While the first answer is correct, everything should be in writing and then it would be actionable, you may be able to prove that you had a verbal contract.Gather all your supporting documents, including copies of whatever payments she has made ( which indicates she owes something) and visit a good business lawyer. If it is for a small amount, it probably will not be worth suing her, perhaps small claims court without an attorney will suffice. If the amount is larger and you can't collect, you can write the bad debt amount off on your taxes, although it may be hard to provide supporting documentation in the event of an audit.

    Good luck and remember to learn the lesson from this experience so it won't be wasted.

  • Jay
    Lv 7
    1 decade ago

    If you sold a business, you have a written contract. Yes?

    You have the right to enforce the contract, in court. If your friend cannot pay, the judge may require that the business be returned to you.

  • 1 decade ago

    Did you keep the business in your name? Did you have a written contract as to how she was to pay you? If you can answers yest to either of these question, contact a lawyer. Keep in mind that if she made a couple payments and did it by cash or with a receipt, she admits this way that she owes you.

  • Anonymous
    1 decade ago

    everybody is saying the same thing!!! contract contract contract

    You had to have signed legal papers if you didnt your a fool

    if you did and you had to have put a clause in the contract about payments and the final payment date (also statements showing payments made) If you have you will have no problems

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  • Anonymous
    1 decade ago

    Everything should have been in writing, everything dated with signatures. You may have to go to court, but with no proof you might lose.

  • Anonymous
    1 decade ago

    You lose. Everything should have been put in writing. Remember that the next time.

  • 1 decade ago

    take her to court!!! if she doesn't care enough about you or your friendship to follow through with your agreement, then she is NOT your friend. send her a certified demand letter & if she doesn't respond by bringing her debt current: SUE her !!!!! and don't feel bad about it (she obviously doesn't)

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