Can one be taken to the local magistrate without a legal contract, for example a piece of paper with showing an agreement of a loan ?
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ANSWERS: 1
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If the other party cannot prove their accusation, then they have no case. Yes, for the most part everything is contract, unless they've verbally recorded the agreement at some point, then verbal contracts are not worth the paper they are written on.
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DancesWithWolves Thank you Creamcrackered for the comment :)
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