Dear Atty. Peachy,

I lent a longtime friend P280,000 about a year ago for the medical expenses of her then very sick husband. Because we had known each other since high school, I did not require him to sign a promissory note. The money was transferred through online banking, and our discussion about the loan took place through text messages.

At first, he promised to pay within three months. Since then, she has repeatedly asked for extensions. Recently, she stopped responding to my messages altogether.

Some friends have told me that I have no case because there is no written contract. Is a verbal loan agreement enforceable? Can text messages and bank records be used to prove that the money was a loan and not a gift?

Sheila

Dear Sheila,

Contrary to what your friends have told you, the absence of a formal promissory note does not automatically mean that you have no legal remedy. Under Philippine law, contracts are generally binding provided the essential elements of consent, object, and cause are present. A loan agreement does not always have to be embodied in a written contract to be enforceable. What ultimately matters is whether sufficient evidence exists to establish that a loan was in fact granted and that the borrower undertook to repay it.

In your case, several pieces of evidence may be significant. The bank transfer records may show that money was delivered to your friend, while the text messages may help establish the purpose of the transfer and any promise to repay. If the messages clearly refer to the amount as a “loan,” discuss repayment schedules, or contain acknowledgments of indebtedness, they may be valuable evidence in support of your claim.

Of course, your friend may argue that the money was a gift, an investment, or financial assistance without any obligation to repay. Should a dispute arise, the resolution would depend on the totality of the evidence presented by both parties.

Before considering legal action, it is often advisable to send a formal written demand for payment. A demand letter may prompt settlement and can also help establish that payment was requested and refused.

If your friend still fails or refuses to pay, you may consider filing the appropriate civil action to recover the amount due. To strengthen your position, keep copies of all relevant records, including bank transaction receipts, screenshots of conversations, emails, and any other communications concerning the loan.

Atty. Peachy Selda-Gregorio