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Ask JGM Your Own Question
JGM
JGM, Solicitor
Category: Scots Law
Satisfied Customers: 11442
Experience:  30 years as a practising solicitor.
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A friend of mine verbally asked me to help him with some business

Customer Question

A friend of mine verbally asked me to help him with some business matters which I duly obliged, he gave me £2000. We are no longer friends and today I received a letter from his solicitor asking for the repayment of his loan back. Where do I stand?
Submitted: 3 years ago.
Category: Scots Law
Expert:  JGM replied 3 years ago.
Thank you for your question.

Was the payment agreed as remuneration for the work that you did? What was the nature of the work? Was the £2000 reasonable for the work actually done?
Customer: replied 3 years ago.
Everything was verbal and the services were all relating to consultation in relation to business, it was verbally agreed that he would give £2000 and it would be for helping him out. This was back in December 2012 the payment was made.
Expert:  JGM replied 3 years ago.
Then you have to write back to the solicitor simply saying that the money was for consultancy services and was not a loan. There is a legal assumption that no one works for nothing and on the basis that you carried out work, it is implied that you will be paid.

Happy to discuss further.
Customer: replied 3 years ago.
I will do this. However if he is adamant that he perceived as a loan, what options are available to him if I deny this as it is his word against mine no one else was party to the agreement.
Expert:  JGM replied 3 years ago.
It is for him to prove his case and there are a few hurdles for him. As you say it's your word against his and he has the onus of proof. Also as I said above there is a presumption that no one works for nothing. Thirdly he has no loan agreement.

Did he expect you to work for him for nothing? Have you asked him that question?
Customer: replied 3 years ago.
We have had no communication since early October last year until the solicitors letter received yesterday. It states on the letter that I acknowledged that it was a loan, I have never done so. The only proof he has is that I banked the cheque.
Expert:  JGM replied 3 years ago.
Deny the claim. That's all you can do at this stage.
Expert:  JGM replied 3 years ago.
Let me know if I can help you further here. Otherwise please leave a positive response on the system so that I am credited for my time.