Minor Who Lied About Age Broke Contract and Stole $10,500 - What Can Be Done?

Question

About a month ago, someone who I was friends with for 3 years and have done business with called me while he was down in Miami, telling me that he and some others were trying to rent a boat. However, he and the others did not have a credit card with a high enough credit limit to pay the boat and he called me asking if I would be willing to let him use my credit card.

He told me that he was not paying for the boat, and informed me that his friend would be paying him the amount in cash the next day and that he would then be depositing that money and sending me a wire for it.

The next day, he started coming up with excuses, and fast forward two months later I'm yet to receive a dollar for the boat, however he continues to tell me that he's going to pay me and even claims he has sent a wire that I've never seen arrive. These communications were made both over the phone and by text. I have two people who were there while he was on the phone with me and could vouch about exactly what happened, and two people witness him receiving the cash but never paying me.

The situation is a bit complicated, however, as he lied to me about being 18 continuously and after the fact I ended up finding out that he was 17. I also have other people who can vouch for the fact that he told everyone he was 18, and I even have a plane ticket which he booked on my computer months ago in which he put his age as 18.

What actions does the law permit a creditor to take in such circumstances?

Edit

In a comment (made after the answers) the poster says that an additional one thousand dollars was to be paid along with repayment of the borrowed sum.

Answer 1

Your friend, it seems, borrowed money from you in return for a promise to pay you back. That is a contract.

The friend has now failed to make good on the promise. That is probably default on the contract. You could sue your friend asking for a judgement in the amount of the loan. You might well win, but if the money has been spent and this person does not have a similar amount of money, such a judgement might be uncollectable.

Or you could sit on the debt, and try to collect at a later time when the person is more likely to have money. However, if you sit too long, the debt will be legally waived.

That this person is a minor matters only in that a minor may, in many cases, disaffirm (cancel) a contract. But, as this page from a law firm says:

If a minor voids the contract, he or she must disaffirm the entire contract. The minor cannot pick and choose the provisions of the contract that he or she likes or finds favorable. Additionally, the minor may be required to pay restitution for the benefit of the goods received. Additionally, the minor may be required to return the subject matter of the contract.

This Investopedia page says:

The person who disaffirms the contract must do so in its entirety. This means the party cannot pick and choose which parts of the contract they will disaffirm. Any property that has been transferred as a result of the contract can be recovered by the minor if they void the contract during a reasonable period of time.

In this case, to disaffirm it seems that the other party would, in effect, have to pay up, so this doesn't really change things.

If you don't sue and the other party does not fomally disaffirm within a reasonable time after s/he turns 18, the contract becomes fully binding.

Answer 2

There is no contract here

See What is a contract and what is required for them to be valid?

This arrangement lacks consideration from the borrower to the lender: basically, you aren't getting anything from this deal. Without consideration from both parties, the agreement is not a contract.

Fraud

This is more likely a simple case of fraud. The borrower received a financial advantage through dishonesty and deception - he said he'd pay you back and he didn't.

You can sue for restitution and/or report the matter to police who may bring criminal charges.