If I made an investment in a friend's business but they will not pay me back, what can I do?
Question Details: I gave someone that I know $3,000 to invest in a personal business. The business is not on the records but I have a text message conversation stating that yes he did accept the money. However, he's now refusing to pay me back. Am I able to sue the person to recuperate the money I invested?
It depends on whether the money was an investment which was paid to give you some ownership interest in the business or was a loan to be repaid. You seem it indicate that it was loan, so we will answer the question based on that: in that case, when a loan is not repaid as and when agreed, you can sue for its return based on "breach of contract" (violation of the agreement about repayment). But you can't call the loan early--it must not be paid when the agreement was to repay it, and the borrower does not need to repay it early. To in win court, you will have to prove you paid the money (e.g. by a cancelled check) and also the agreement to repay and its terms (which you can do by text message and your own testimony), as well as the fact that repayment is now late. (Of course, it would be easier to prove these things with an actual loan agreement or promissory note in the future, always get one when you lend money.)