IS IT A LOAN, A GIFT OR WHAT?

When two parties are not related, there is a longstanding principle that the presumption arising from the delivery of a check is that it was tendered in payment of a debt and not as a loan. (Leask v. Hoaoland, 205 NY 171 [1912]; Tn Re Effross, 43 ÄDS39 [1st Dept 1973]), In the absence of other evidence, a loan is not presumed from the making of a check, there must be evidence that the payment was intended as a loan. (Marks v. Kellogg, 170 AD 468 [1st Dept 1915]). Care must be given in considering evidence to overcome the presumption that the check tendered represented some debt or obligation owed. (Kofihler v. Adler., 78 NY 287 [1879]. So what happens when two parties enter into an oral arrangement for a business and one transfers a check to the other party as some sort of contribution to the business? The deal sours and the only written evidence available is a cancelled check? Was the delivery of a check a loan, payment of a debt, or a contribution of a business interest? Was it a gift? That was a matter recently discussed with me and it emphasizes the old saying that an oral agreement is not worth the paper it is written on. Before you enter into any transaction, with family, friends, or business acquaintances.....consult with an attorney.