Contracts and Agreements

[Neo111]

A friend of mine is going through a difficult situation and I was hoping to find some guidance for them. They have an online business where they became acquainted with a seller in Europe who sells merchandise and developed a relationship. Without any contracts they agreed to do business in a way where merchandise was shipped from seller to my friend ahead of time and seller would be paid upon the sale of merchandise by my friend in USA. I have no idea why the seller would do this. It was built upon a personal trust and at first worked, but then friend went through a difficult time sold merchandise and wasn't able to repay seller. Now seller is demanding payment and threats of lawsuit. There was no official contract or agreement with anything signed, just word of mouth. Does my friend have anything legally to worry about if there is no official contract? Can the seller do anything from outside the country as far as a lawsuit? It wasn't a large amount of money from my understanding. How best for my friend to handle this mess? I appreciate any advice, I don't know how people get into situations like this.

 

[FlyingRon]

The word SCAM comes to mind as to "why the seller would do this." I would tell your "friend" to stop engaging in such activity before she loses big time and to ignore the foreign business partner.

 

[Neo111]

The word SCAM comes to mind as to "why the seller would do this." I would tell your "friend" to stop engaging in such activity before she loses big time and to ignore the foreign business partner.

I think they are done engaging in anymore activity, but they are concerned about the merchandise they already sold and being harassed about payment. Can the seller or scammer do anything in a situation or is it their loss for shipping something overseas without being paid first and there being no written contract?

 

[Zigner]

The word SCAM comes to mind as to "why the seller would do this." I would tell your "friend" to stop engaging in such activity before she loses big time and to ignore the foreign business partner.

I don't necessarily agree. I don't know why the seller would have fronted the product in such a way, but it seems that the arrangement was working fine up until the OP's friend decided to stop holding up his/her end of the bargain.

The OP's friend should log on to ask his/her own questions.

 

[LdiJ]

I don't necessarily agree. I don't know why the seller would have fronted the product in such a way, but it seems that the arrangement was working fine up until the OP's friend decided to stop holding up his/her end of the bargain.

The OP's friend should log on to ask his/her own questions.

I agree. Its called providing inventory on consignment. It happens all the time. However, it usually doesn't happen without a contract. The lack of a contract however, does not mean that the OP's friend is off the hook. The seller can hire an attorney in the US to sue him for the debt, and often get the attorney fees paid to boot. Or, the seller could sell the debt to a US collection agency, we have seen that sort of thing much more frequently these days.

 

[Zigner]

...and often get the attorney fees paid to boot.

*IF* their contract provided for that. Of course, there is no written contract, so there is no way to show that the contract provided for that.

 

[LdiJ]

*IF* their contract provided for that. Of course, there is no written contract, so there is no way to show that the contract provided for that.

That is why I used the word "often".

 

[quincy]

I am a bit curious about what sort of "merchandise" is being sold.

Curiosity aside, I see potential for a breach of oral contract on the civil side and theft on the criminal side.

Whether any legal action of any kind is pursued by the European seller against the US friend-of-Neo could depend on the type of merchandise being marketed and its value.

 

[Neo111]

I am a bit curious about what sort of "merchandise" is being sold.

Curiosity aside, I see potential for a breach of oral contract on the civil side and theft on the criminal side.

Whether any legal action of any kind is pursued by the European seller against the US friend-of-Neo could depend on the type of merchandise being marketed and its value.

I think it involves musical instruments. The instruments seem to be fake Chinese or Eastern European. There might be issue with the instruments as well and not sure if seller is declaring anything. It is a bit of a scam in my eyes as the seller was over charging for the instruments. I thought maybe friend could find out where the seller obtained the instruments and buy replacements. The seller refuses to reveal their source.

 

[Zigner]

I think it involves musical instruments. The instruments seem to be fake Chinese or Eastern European. There might be issue with the instruments as well and not sure if seller is declaring anything. It is a bit of a scam in my eyes as the seller was over charging for the instruments, for instance they paid, 200 and charging friend 1000. I thought maybe friend could find out where the seller obtained the instruments and buy replacements. The seller refuses to reveal their source.

It's really time for you to back off and let your "friend" deal with this.

 

[Neo111]

It's really time for you to back off and let your "friend" deal with this.

That's what friends are for. To help in difficult times and find guidance.

 

[quincy]

I think it involves musical instruments. The instruments seem to be fake Chinese or Eastern European. There might be issue with the instruments as well and not sure if seller is declaring anything. It is a bit of a scam in my eyes as the seller was over charging for the instruments, for instance they paid, 200 and charging friend 1000. I thought maybe friend could find out where the seller obtained the instruments and buy replacements. The seller refuses to reveal their source.

Stolen goods? Counterfeit goods? All sorts of possibilities.

Your friend needs to find an attorney in his area who will personally review the arrangement he has with the European supplier. Trying to provide your friend with help by searching online for possibilities is not going to help him. All facts need to be known - and you are unlikely to have access to all of these facts.

 

[Neo111]

Stolen goods? Counterfeit goods? All sorts of possibilities.

Your friend needs to find an attorney in his area who will personally review the arrangement he has with the European seller. Trying to provide your friend with help by searching online for possibilities is not going to help him. All facts need to be known - and you are unlikely to have access to all of these facts.

Yes, you're right. Not sure what's really going on, but way beyond my expertise level I appreciate the advice. What kind of a lawyer would be needed?

 

[Zigner]

That's what friends are for. To help in difficult times and find guidance.

GOOD friends will recognize when they aren't "...sure what's really going on" and when something is "way beyond" their "expertise level".

 

[quincy]

... What kind of a lawyer would be needed?

Your friend would be smart to have the personal review done by a lawyer in a large firm with a diverse practice.