My friend approached me with this wonderful business venture that failed. So I took out a $5,500 loan from a family member to finance the business.

The loan was to be paid back in full within 3 months. The money was used to secure a truck, trailer and other start up equipment. After the business failed, my friend wants no part of paying back the loan. I have paid back the loan on my own. What recourse do I have against my friend?
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Answer
Robert Kane
Eagan, Minnesota
Corporate Counsel
612-701-7767

About
My practice consists primarily of counseling and representing individual and business clients on matters involving general business law, government relations, employment law, and contracts.

The fact that you borrowed money from a family member and then repaid it does not give you cause of action against your friend. If your friend breached an agreement between you and him you may be able to successfully sue him, but it will not be because of the loan.

02/15/2011