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Breach of Contract

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fosko_bg

Junior Member
What is the name of your state (only U.S. law)? CA
Breach of contract-
I am small used car dealer in CA and I had a client pay me deposit of $8000.00 for a limo bus that I have on consignment for $25,000. I talked to him and he agreed to trade in goods for $10,000 value which we did not put into the contract and we wrote the contract with purchase price of the limo for $15,000. I know that this is a big mistake, but the problem is not just this.. I gave him possession of the limo bus for 1 week, so he can get it inspected at a mechanic shop and pay the rest of the money and bring the goods within 1 week of the signing of the contract. We did not notarize the contract, but both signed it and dated it. The buyer never called and never came back to the office. I found him and the limo bus after 3 weeks of searching for him. Called the police and asked them to help me repossess the limo bus. They told me that this is civil and they can't help me and I have to find a repossession company. I did but it was already too late, the limo bus was moved from the location and now I have no idea where it is. The buyer is not cooperating and he is refusing to bring the vehicle back. In the contract also states that if the buyer does not pay the full amount within a period of 1 week, dealer would be forced to repossess the vehicle and keep 20% of deposit, repossession fees and any restoration costs. So, the buyer clearly knew and agreed to the contract, but he is depriving me from taking possession of it. What should I do? It's been almost 2 months now...I made a report with the police that he has possession of it, but the police is not willing to charge him with auto embezzlement because to them it is civil matter, because there is a contract. I do not want to sell the limo bus to this buyer anymore, I just want to get it back and return it to the owner in the same condition it was originally brought for sale.
 
Last edited:


sandyclaus

Senior Member
What is the name of your state (only U.S. law)? CA
Breach of contract-
I am small used car dealer in CA and I had a client pay me deposit of $8000.00 for a limo bus that I have on consignment for $25,000. I talked to him and he agreed to trade in goods for $10,000 value which we did not put into the contract and we wrote the contract with purchase price of the limo for $15,000. I know that this is a big mistake, but the problem is not just this.. I gave him possession of the limo bus for 1 week, so he can get it inspected at a mechanic shop and pay the rest of the money and bring the goods within 1 week of the signing of the contract. We did not notarize the contract, but both signed it and dated it. The buyer never called and never came back to the office. I found him and the limo bus after 3 weeks of searching for him. Called the police and asked them to help me repossess the limo bus. They told me that this is civil and they can't help me and I have to find a repossession company. I did but it was already too late, the limo bus was moved from the location and now I have no idea where it is. The buyer is not cooperating and he is refusing to bring the vehicle back. In the contract also states that if the buyer does not pay the full amount within a period of 1 week, dealer would be forced to repossess the vehicle and keep 20% of deposit, repossession fees and any restoration costs. So, the buyer clearly knew and agreed to the contract, but he is depriving me from taking possession of it. What should I do? It's been almost 2 months now...I made a report with the police that he has possession of it, but the police is not willing to charge him with auto embezzlement because to them it is civil matter, because there is a contract. I do not want to sell the limo bus to this buyer anymore, I just want to get it back and return it to the owner in the same condition it was originally brought for sale.
You're obviously not a very EXPERIENCED car dealer, especially if you agreed on specific additional terms that you never included in the contract.

Your only recourse here is what is written into your contract - that if he failed to pay as promised, that you would have the right to repossess the vehicle. You AREN'T entitled to the $10k of goods because there is nothing in the written contract that says he agreed to it.

What I want to know is what you DID specify in the contract in regards to when he was to pay the remaining balance of $7k that was left after the $8k deposit? Did your contract at least state that?

I'd suggest that you hire yourself a good repo company to try to locate and seize the vehicle. Understand that you already DID sell the vehicle to this buyer, and there is only a remote chance that it will now be returned to the owner in the same condition in which it was originally sold.
 

fosko_bg

Junior Member
Re:breach of contract

I specified in the contract limitation to payoff is 1 week and we dated the contract.
I did not make any documents for sale of the vehicle, like bill of sale and title!

I have hired already a repossession company. Is there anything I should do?
 

Antigone*

Senior Member
I specified in the contract limitation to payoff is 1 week and we dated the contract.
I did not make any documents for sale of the vehicle, like bill of sale and title!

I have hired already a repossession company. Is there anything I should do?
Pray....:cool:
 

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