You loaned your friend money. Now what?

Another Tuesday, another legal crash course from your favorite internet lawyer.

Let’s talk about the awkward art of getting your money back.

Because sometimes, being the “nice friend” means spotting their lunch and their rent... and then getting ghosted harder than a bad hinge date.

Today we’re covering what the law actually says when money and friendships mix, and whether your Venmo request holds any legal weight.

Let’s get into it.

Is a handshake deal a real contract?

Yes… under the right conditions.

Even if nothing’s written down, a verbal agreement can still count as a contract (unless it’s something the law says must be in writing). 

To be legally binding, you generally need three things:

1. Offer and agreement: “Can I borrow $500?” “Sure, pay me back next month.”

2. Consideration: Something of value is exchanged (in this case, money).

3. Clear mutual understanding: Both people understood this wasn’t a gift.

You don’t need a lawyer or a fancy signature, but you do need proof that this was a loan, not a donation to the “my dog ate my rent” fund.

So… is a Venmo request enforceable?

Venmo isn’t a contract but it might help prove one.

If there are messages, payment notes (like “loan for July rent”), or a digital trail showing intent to repay, you might be able to prove there was a verbal contract.

Judges love receipts. Screenshots. Texts. DMs. Emojis that clearly meant “you owe me.”

What won’t help you:

• Vague payment notes (looking at you, “🍕💃🔥”)
  

• No agreement on when or how they’d pay you back
  

• Asking for repayment months later with zero reminders in between

Here’s what you can actually do:

Talk it out (seriously):
A calm text or convo reminding them what was agreed can go a long way. People forget. Or pretend to.

Send a demand letter:
This is a formal way to say “pay me, or I might sue.” You can write it yourself or hire a lawyer if the amount’s big enough.

Small claims court:
For smaller amounts (usually under $10k depending on your state), you can sue without a lawyer. Bring your evidence, make your case.

What NOT to do:
Don’t harass them, threaten violence, or post them on TikTok with “scammer alert” hashtags. That’ll get you in trouble, not them.

Legal Notepad

Money + friendship = rules.

• Verbal contracts can be legit, if you can prove them.
  

• Venmo and texts can help show intent, but clear terms matter.
  

• Keep it classy if you want your cash back. Courts don’t reward chaos.

Need more real-world tips for legal sticky situations like this? Click below to hop on the waitlist for my full legal guides, dropping soon.

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Until next Tuesday, this case is closed.