I took out a loan from my uncle with spoken terms that it be repaid when I landed a promotion. I lost my job and took on a much lower paying one and my uncle and I arranged, again spoken, that I pay half the loan with my tax refund and that makes the loan fully paid. He wanted the amount at the time for house repairs. I fully paid the half with cash and signed on paper the payment amount, date, and that the half payment covers full loan payment, both our signatures.

It's been over a year now, my uncle remarried, unfortunately for him, and the new wife has insisted on him recovering the rest of the loan amount from me; we have never gotten along. She just really wants the money for herself, but I won't get into that further.

I don't deny what I borrowed but we had the prior arrangement before this woman even existed in his life. I also gave my uncle some materials for his projects. It had never been an issue between us or else I never would have gone with the arrangement. My uncle and I have been discussing how to handle it and he has said that our contract of payment can really only be enforced in the court. Until going to court, our contract is essentially 'no good'. Can you please clarify this for me? His wife has explained that only the judge can say if our contract is good and I could be responsible for the full payment plus interest. I thought once something was signed (unless there was illegality inside) it's a done deal.

I just really want to know what is and isn't legal here before I make any more deals or give this woman the money, yes it will go directly to her hands, because I honestly want to avoid court. It also helps to know before I ever sign or have anything signed in my life again. Thanks.

If it's a valid contract - both parties are in agreement and both receive some consideration (money) - it can be enforced in Court. The Court cannot CHANGE that agreement - for example, order you to pay interest or more money.

Does that answer it?

I understand to a point but the wife says the contract would not be a valid contract anymore because my uncle is no longer in agreement with it. Which really means she isn't, but I digress.

Under those circumstances, how will the court deal with the contract if it's not valid? Thanks.

Your new step aunt has no standing in this arrangement. She can not take you to court and does not have a leg to stand on so just stop talking/listening to her. However, she may be able to cause your uncle to demand payment. Do not inder any circumstance hand her any money, period. Unless there are more details it sounds like your original agreement calls for payment when the promotion comes about. How is that going?

Ballinger is right - as usual. He should give up home repair and take up law (but I also digress).

He's right - your "Aunt" can do and say anything she wants. She is not a party to the contract.

I stand with my original advice.

It will be a matter of what is reasonable and feasible.