If an employer buys a car for an employee and places the employee’s name on the title but there is no agreement to repay them, can it try to collect later?

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If an employer buys a car for an employee and places the employee’s name on the title but there is no agreement to repay them, can it try to collect later?

My employer bought me a used car 6 months ago in the amount of $20K. There was no agreement either verbally or in writing to pay my employer back. Now it wants me to sign a promissory note to pay approximately $6,300 to them over the next 7 years. If it is not fulfullied, they want the car back. Since the employer did not make an agreement before or at the same time the car was bought, is the employer’s request legal and binding?

Asked on March 17, 2012 under Employment Labor Law, Texas

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

First you are under no obligation to sign any promissory note submitted to you after the fact concerning the car that you are writing about. Since the car is in your name, it is presumed that it is yours to do with it as you want. however, from a moral ground, it you understood that the car was not to be yours or that you were to pay your employer for it, you should do so but only under those terms and conditions that you agree to and can afford. I suggest that you consult with an attorney that practices in the area of employment law to further assist you.


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