A written agreement in these matters is always better than an oral one as this helps you to enforce your rights easily.

Someone owes me close to $5,000. Can I put into place a contract establishing his acknowledgement of the debt and have it signed by him so that he can’t deny the amount in future? Should I also mention in the contract that he needs to repay the amount in less than 90 days? Would I be able to make use of the contract in case he fails to repay the amount? Would the breach of contract be easier to take necessary legal steps?

1 Answers
Votes: 
-2 votes
+
Vote up!
-
Vote down!

What you need is a Promissory Note (to detail the amount owed, interest, any collection cost you incur, any legal fees). A written agreement in these matters is always better than an oral one as this helps you to enforce your rights easily.

In case there is a breach of contract, you can then sue the person in your local Small Claims court yourself without hiring the services of a lawyer.
 


Ask Question

Waterfall approach to debt free ™

Legal debt relief methodology that works based on your financial conditions. Learn more »

BBB-A--Rating