Selling a car - what to do if someone puts a deposit and backs out?

Carhodes

New Member
An oral contract was made between buyer and my husband . The agreed amount of $1,800.00 was set and the fact that she wouldn't receive the vehicle until August 10th,2018 when the amount was paid in full. Buyer paid a total of $1300.00 in 2 payments, one payment of $1000.00, a second payment of $300.00 and has now decided that she wants the vehicle at that amount or wants the money back. I feel that since she backed out she shouldn't get the money back due to the fact she knew the car was being sold because I wanted to buy a new car which I have already done. The car is still sitting in my drive way and she still has the option to pay the $500 and get the car. What should we do?
 
That's what I said as well that if she wanted the money back it would after we have sold the car but she is demanded it back now. So to be as rude as she is I said take us to small claims court. We didn't back out of the deal she did. So i'm not going to inconvenience myself by paying you money I don't have.
 
You can ignore her demands and maybe she will take you to small claims court. You might appease her by refunding a portion of the money now and the rest when the car sells. Don't drag it out too long. If you can't sell it soon for $1800 then maybe it wasn't worth that in the first place
and maybe $1300 is a fair price.
 
That's what I said as well that if she wanted the money back it would after we have sold the car but she is demanded it back now. So to be as rude as she is I said take us to small claims court. We didn't back out of the deal she did. So i'm not going to inconvenience myself by paying you money I don't have.

Basic contract law. You can't sit on this. You must mitigate your losses by putting the car up for sale for $1800.

(No more cockamamie payment agreements or deposits. Cash in full or no sale.)

You cannot profit from her breach. If you sell it for $1800 you refund her $1300. If factors beyond your control result in you getting a lower price you deduct the difference from her refund. Feel free to explain this process to her and that you will calculate her refund as soon as you re-sell the car.

Every judge in every court knows how this works. It's Contracts 101 in Law School.
 
I feel that since she backed out she shouldn't get the money back due to the fact she knew the car was being sold because I wanted to buy a new car which I have already done.

Since you weren't a party to the agreement, what you may have wanted or done is irrelevant.

What should we do?

I'm going to assume that the verbal agreement contained no provisions whatsoever regarding the situation that has arisen.

On that assumption, the first thing you should do is read this section of the Pennsylvania Statutes, which provides that, as a general rule, "a contract for the sale of goods for the price of $500 or more is not enforceable . . . unless there is some writing sufficient to indicate that a contract for sale has been made between the parties and signed by the party against whom enforcement is sought or by his authorized agent or broker." Since none of the general exceptions to the rule appear to apply, and since your husband would be unjustly enriched if he kept the buyer's $1,300, in exchange for which the buyer received nothing, I think your husband would lose if he refused to return the money and the buyer sued to get it back.
 
If it wasn't clear from the comment above.... If you ultimately sell the car for less than what the previous buyer agreed to pay you may deduct that difference from the amount the original buyer paid before refunding the rest.
So if you sell now for $1600 you become whole by deducting $200 from the $1300 previously paid and then refunding the remaining $1100 with a document explaining the deduction.
 
your husband would be unjustly enriched if he kept the buyer's $1,300, in exchange for which the buyer received nothing, I think your husband would lose if he refused to return the money and the buyer sued to get it back.

That would apply if husband kept the car and the money.

Since none of the general exceptions to the rule appear to apply

I think these exceptions do apply:

(c) Enforceability of contracts not satisfying general requirements.--A contract which does not satisfy the requirements of subsection (a) but which is valid in other respects is enforceable:
(2) if the party against whom enforcement is sought admits in his pleading, testimony or otherwise in court that a contract for sale was made, but the contract is not enforceable under this provision beyond the quantity of goods admitted
(3) with respect to goods for which payment has been made and accepted
 
If you're referring to my prior response, in my opinion, the OP's husband is not entitled to keep any of the money, regardless of how much the car sells for. Why? Because there is apparently no enforceable contract.


I concur, that as a matter of law, the law won't recognize an oral agreement as a contract if the amount in question exceeds $500.

Even if oral contracts in excess of $500 were recognized, PROOF would become difficult, if not impossible.
 
I think these exceptions do apply:

(c) Enforceability of contracts not satisfying general requirements.--A contract which does not satisfy the requirements of subsection (a) but which is valid in other respects is enforceable:
(2) if the party against whom enforcement is sought admits in his pleading, testimony or otherwise in court that a contract for sale was made, but the contract is not enforceable under this provision beyond the quantity of goods admitted; or
(3) with respect to goods for which payment has been made and accepted or which have been received and accepted (section 2606).

Since the OP didn't indicate any lawsuit had been filed, exception #2 obviously doesn't apply. Exception #3 might apply if part payment is deemed sufficient under the statute.
 
We will put the car up for sale as of tomorrow because we told her she has the end of the month to pay the remaining. Then will return her the money which I agree with you guys is the right thing to do. The crazy thing is she keeps saying give me the car or the money as if she can bully us into selling the vehicle for the amount she would like other than the amount that is agreed on. We actually will be selling it for more, he only agreed to $1800 because she was a coworker that really needed a vehicle.
 
he only agreed to $1800 because she was a coworker that really needed a vehicle.

That explains a lot.

Never do business with friends, relatives, or co-workers. They will screw you worse than strangers.

This time:

Cash in full (green money).
No deposits, no payment plans, no checks.
Put the buyer's name and address in the buyer's space on the title. This avoids title jumping. Take copies of both sides of the title. Use your camera phone.
Make two copies of a bill of sale that says "AS IS, no warranties or guaranties of any kind, express or implied." Both sign both copies.
Retain your plates if your state allows it and have the buyer get a temp sticker to drive the car.
As soon as the car goes down the road, immediately file your sold notice with the DMV.
Pocket your cash and be happy that it's all over.
 
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