[Successful Case of a Claim for Return of a Loan] Successful Claim for Return of a Loan Against the Defendant Who Was Lent Business Funds

The client in this case was asked to lend money by the defendant, an acquaintance with whom the client had been close at work, who said that he was short of business funds for a new venture.

Because they had been on such close terms, the client trusted the defendant and lent the money in cash. Since the defendant's business was doing well, the client lent the money without any suspicion.

The defendant, however, did not repay the client, and although the client requested repayment of the debt several times, the defendant did not repay it.

The client ultimately decided to file a lawsuit to recover the loan and entrusted the case to Daeryun Law Firm.

The attorney at Daeryun Law Firm set out to develop a plan to assist the client in prevailing in the lawsuit to recover the loan.

The legal basis for a lawsuit to recover a loan is grounded in the Civil Act. Let us review the statutes that serve as the legal basis for a lawsuit to recover a loan.

• Civil Act Article 598 (Definition of Loan for Consumption)

A loan for consumption becomes effective when one party agrees to transfer to the other party the ownership of money or other fungible goods, and the other party agrees to return goods of the same kind, quality, and quantity.

• Civil Act Article 390 (Non-performance of Obligation and Damages)

If an obligor fails to perform in accordance with the substance of the obligation, the obligee may claim damages. This does not apply, however, where performance has become impossible without any intent or negligence on the part of the obligor.

• Civil Act Article 393 (Scope of Damages)

(1) Damages for non-performance of an obligation shall be limited to ordinary damages.

(2) Damages arising from special circumstances are recoverable only where the obligor knew or could have known of such circumstances.

The attorney team at Daeryun Law Firm emphasized that, in the lawsuit to recover a loan, the defendant had prepared a promissory note for the money he borrowed, showing his intent to repay it.

The team emphasized that, although the client had requested repayment of the debt several times, the defendant had not repaid any of it to date.

The team emphasized that the client had filed the lawsuit to recover a loan in order to obtain both the loan and the interest on it.

The court accepted the opinion of Daeryun Law Firm and ruled, ‘The defendant shall pay the plaintiff the full amount of the loan and the delay damages.’

The court also ordered the defendant to bear the litigation costs.

The client was able to recover the money through the lawsuit to recover a loan. He expressed his gratitude to the attorney team at Daeryun Law Firm, who assisted with the lawsuit to recover a loan with full effort.

A lawsuit to recover a loan may be filed only where there is a legal right to make the claim.

It is necessary to prove that there was a monetary agreement between the creditor and the debtor. For this reason, it is advisable to resolve the matter with the help of an attorney.

If you need a lawsuit to recover a loan as described above, you may entrust your case to Daeryun Law Firm.