Legal Question in Civil Litigation in California

Re: Default Determination in Oral K

You should consult an attorney and have them send a demand letter for payment. Do this ASAP.

Re: Default Determination in Oral K

If she acknowledged the debt and promised to pay in writing that sounds like a written agreement. Promissory notes can either have a fixed or determinable due date (60 days after the final judgment in Smith v. Jones), or else it is a demand obligation. In the latter case, the breach occurs when you demand but do not receive payment.

The statutes of limitations most likely to apply are four years for a written contract, three years for fraud and two years for an oral contract. In each case the time to sue starts with the breach.

Re: Default Determination in Oral K

The statute of limitations on a contract action is four years and three years on a fraud action. The sooner you initiate collection efforts the better. Martin

Re: Default Determination in Oral K

You should have a lawyer send a letter stating that formal repayment arrangements will have to be made or you will have no choice but to sue for return of the funds, with legal interest, etc. Hopefully she will respond and negotiate a promissory note with interest and commercially reasonable repayment terms. Otherwise you will need to file suit.

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