Hi Tina,
In a word YES a verbal contract is legally binding as long as you and the borrower agreed the terms of the contract.
From what you've written the original written contract is outside of the limitation act which means you haven't anyy recourse for legal action.
If when you spoke with him in 2005, he acknowledged the debt then the limitation act does not apply and you have grounds for legal action. However you need to prove that you have spoken with him and that an acknowledgement was agreed.
If you agreed a new verbal contract with him on the telephone then it stands as legally binding as long as you agreed on all points of the contract i.e. money owed and when it was to be paid by etc.. If it was subject to contract then it has no legal standing.
The best thing to do would be to speak with a solictor and see if you have a case.
Hope this helps
Gary
The Wellman Partnership LLP
www.wellmanpartnership.co.uk
01202 462781 |