• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Association backed out of agreement at last minute

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

lawbird

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

A local professional association was attempting to sell a piece of their equipment for the last 4-5 months but has been unsuccessful. Last week a friend of mine expressed an interest in purchasing said equipment so I contacted the associations vice president what the asking price was for the equipment. He advised me of the amount the association was looking to get which I related to my friend. The following day my friend never contacted me back so the next day I contacted the associations vice president via email and asked if I could have a shot selling it online for the association and for my commission I would receive any amount I sold it for over their asking price. Within 12 hours of posting it online I had the equipment sold to an out of state buyer. I contacted the association vice president via email and told him that the equipment was sold and the buyer wanted to purchase it cash the next day. I would go back and forth by email with the associations vice president and the buyer establishing a time the buyer could travel to Pa. to meet the associations vice president to complete the purchase. I emailed the assoc. Vice president 7 different emails relaying questions the buyer had, establishing time and date the buyer could pick the equipment up, sending details of the equipment, and in one email the associations VP asked if I would remove certain identifying decals from the equipment before the buyer came the following day. My last email to the associations vice president I thanked him for allowing me the opportunity to sell it and make my commission. In this same email I revealed what the final sale price was and offered my thanks for allowing me to earn that amount in commission. I ended up coming to an agreement with the buyer to sell it for almost double what the association was asking. After thanking the Assoc. VP he emailed me back and said he couldnt sell it because they had someone who was already coming to pick it up the next day, That was two days ago and the piece of equipment is still sitting in the same spot its been sitting in and does not appear to be sold as there are for sale signs still in the window. Can anyone please tell me what recourse I have if any. Because I'm screwing the out of stated buyer over there is a chance that my seller ratings will go down. I've been selling online for years and never screwed anyone over until now.
 


tranquility

Senior Member
I think it unlikely you would be successful. A contract for the sale of goods for over $500 needs to be in writing and signed by the party it is to be enforced against.
§ 2201. Formal requirements; statute of frauds.
(a) General rule.--Except as otherwise provided in this
section a contract for the sale of goods for the price of $500
or more is not enforceable by way of action or defense 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. A writing is not insufficient because it omits or
incorrectly states a term agreed upon but the contract is not
enforceable under this subsection beyond the quantity of goods
shown in such writing.
So, it doesn't seem there was ever an enforceable contract for the sale. Because you did NOT sell it for more then the asking price, you do not deserve any commission. Realtors often have clauses in their written agency contracts dealing with the bringing of a cash offer for the full price. You did not. I don't think you can enforce anything here. You might be able to claim a breach of implied covenant of good faith and fair dealing on the contract in that they did not cooperate. But, that would be hard and you would need an attorney to prosecute and it may not be true when the facts are known.

I think this is a live and learn situation. Sorry.
 

lawbird

Member
Backed out at last minute.

At the beginning of our agreement there was no set amount how much I would actually make for a commission because I had know way of knowing how much I would actually get for the item in the end. It just so happened that I sold it for $1000 more then their asking price so there was never an expressed amount we agreed upon except anything over $2000. After I kind of knew I was getting screwed I lowered my commission and told the VP I would split the $1000 with the association. The association would then benefit twofold. First they were getting rid of an item they were unable to sell and secondly they were getting $500 more than their asking price. Is the statute of goods over $500 still enforceable?
 

tranquility

Senior Member
1. The statute of frauds is in regards to the sale of the equipment (that I assume is for over $500). There is no enforceable contract for the sale.
2. You may have a contract with the association for your work on the sale. However, since the equipment was not sold by you, you deserve nothing on that contract.
3. You could argue the reason the equipment was not sold by you is because the association breached the covenant of good faith and fair dealing. But, that is not going to be successfully prosecuted for the amounts you are talking about.
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top