Am I really in breach on a used car sale?

[bambam323]

What is the name of your state (only U.S. law)? California

I'm moving out of state and needed to sell a car quickly. I took a $500 deposit from an interested buyer who was going to try to pay the balance before my move date. After 10 days, his chances of coming up with the cash seemed slim.

Another interested party came to see the car (with cash in hand). I had notified the first guy in advance of this to give him a chance to commit to completing the sale. He needed at least 2 more weeks. I sold the car to the 2nd guy to ensure the car sold before I moved.

Naturally, the 1st guy is very upset, demanding I get the car back and threatening to take me to court. Yes, I'm returning his deposit and yes, I'm a jerk for selling it out from under him....but could this really cause me any legal grief? What is the name of your state (only U.S. law)?

 

[swalsh411]

If you haven't already, return his deposit ASAP, like yesterday.

Getting the car back is not an option and the fact that he thinks it is tells me he's not very bright.

I cannot fathom what he could take you to court over. You acted reasonably by giving him a chance to complete the sale and he said he needed 2 more weeks. Used cars are plentiful.

And you weren't a jerk. You needed to sell the car fast and you gave him a chance to complete the deal.

 

[Mass_Shyster]

The bad news is you may actually be in breach of contract. You wrote that he "was going to try to pay the balance before my move date". Since you sold the car prior to your move date, you did not give him the amount of time that you said you would.

The good news is that if you didn't have a written agreement, the stature of frauds will prevent him from enforcing a verbal contract for "goods over $500".

The other issue is damages. He will have to prove that you had agreed to sell him the car at a price less than the actual value of the car. His damages would be the difference between the agreed price, and the actual value. Proving, with a preponderance of evidence that the actual value of the car was X will be pretty hard for him to do.

Give him back his deposit, and don't give him your new address.

 

[cyjeff]

I agree.

Tell him to take you to court after he gets his deposit.

I can tell you that no court is going to expect you to deny a willing buyer because a previous interested party needed more time.

This falls under "you snooze, you lose".

 

[bambam323]

Thank you for the responses. I'm heartened to see that your input is consistent and supports my understanding of the situation.