Is a Verbal Contract binding in Arizona??

[tomkat]

I have a question regarding a verbal contract I made with a computer seller. Here is the story: I live in Arizona and buy used/surplus laptops from companies and then fix them up and resell them on Ebay. I was told of a certain company that was looking to sell some surplus laptop and I contacted the gentleman and made an appointment to view the laptops. I looked them over and tested them for over 1 1/2 hours, then made him an offer. He said he would consider the offer and contact me the next day. The next day he called and wanted more money than I offered, so I counter offered and he countered back and I agreed to his final price. I made sure to ask him over the phone if this was a "done" deal, and he assured me it was and asked me to email him my State Sales Tax I.D. number and said to come pay for and pick the laptops up the next day.

Well, the next day he called me and said he was taking most of the laptops out of the deal ( all of the best laptops I was interested in) and the ones remaining for me to buy were all old and worthless. I told him we had a verbal agreement for the purchase and he just said "Oh, well".


I did tape-record our conversation regarding the laptop purchase, so I do have proof that he made a verbal agreement to sell me the laptops for a set price.


So, do I have a case against this person in small claims court??? I estimate I lost about $3000 profit from losing this deal. Any help wouel be appreciated.

 

[I AM ALWAYS LIABLE]

My response:

You never mentioned the "contract price"; e.g., if it was for more than $500.00. Also, you may have violated the Arizona Phone Interception laws.

47-2201. Formal requirements; statute of frauds

A. Except as otherwise provided in this section, a contract for the sale of goods for the price of five hundred dollars 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.

B. Between merchants if within a reasonable time a writing in confirmation of the contract and sufficient against the sender is received and the party receiving it has reason to know its contents, it satisfies the requirements of subsection A of this section against such party unless written notice of objection to its contents is given within ten days after it is received.

C. A contract which does not satisfy the requirements of subsection A of this section but which is valid in other respects is enforceable:

1. If the goods are to be specially manufactured for the buyer and are not suitable for sale to others in the ordinary course of the seller's business and the seller, before notice of repudiation is received and under circumstances which reasonably indicate that the goods are for the buyer, has made either a substantial beginning of their manufacture or commitments for their procurement; or

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 had been made and accepted or which have been received and accepted (section 47-2606).


Arizona
Ariz. Rev. Stat. Ann. § 13-3005 (1999): Interception of a wire or electronic communication by an individual who is not a party, without the consent of someone who is a party to the communication, is a felony. The electronic communications referred to in the statute include wireless and cellular calls. The overhearing of a conversation by an individual who is not present, without the consent of a party to that conversation, is also a felony. Both violations are classified as "class 5" felonies, which are the second least serious felonies in Arizona.


Good luck to you.

IAAL


[Edited by I AM ALWAYS LIABLE on 05-11-2001 at 05:22 PM]

 

[tomkat]

Amount of purchase

The agreed price for the purchase was $2000.00. And as far as the tape-recording goes, since I was one of the people involved in the conversation, I thought it was perfectly legal to record it without the other persons knowledge.

 

[I AM ALWAYS LIABLE]

My response:

Then, it doesn't matter that you have a tape recording. The "Statute of Frauds" clearly states that any contract for more than $500.00 must be in writing. Therefore, your "contract" is unenforceable.

Sorry.

IAAL

 

[JETX]

To add to IAAL's absolutely correct advice....

Your statment that you "estimate I lost about $3000 profit" would be very hard to prove in court, even if you did have a case of 'breach of contract'. This is especially true since the 'profits' you claim are not fixed, but are in fact based on 'auction prices', which are virtually unprovable. You would have to be able to present CREDIBLE sales history and documentation to support your 'estimated value of the deal'.

Additionally, I presume that the $3,000 in profit is not considering the costs and labor that would be expended in order to "fix them up and resell them on Ebay" and the costs of the eBay sale.

In summary, even if you had a case, it would be very hard to prove to the satisfaction of a court what your ACTUAL damages might be.

As to the issue of wiretapping.... Arizona is a 'one party' law state. Meaning that permission from only one party (you) is required in order to tape record a conversation.
"Ariz. Rev. Stat. Ann. § 13-3005 (1999):
13-3005 . Interception of wire, electronic and oral communications; installation of pen register or trap and trace device; classification; exceptions
A. Except as provided in this section and section 13-3012, a person is guilty of a class 5 felony who either:
1. Intentionally intercepts a wire or electronic communication to which he is not a party, or aids, authorizes, employs, procures or permits another to so do, without the consent of either a sender or receiver thereof.
2. Intentionally intercepts a conversation or discussion at which he is not present, or aids, authorizes, employs,
procures or permits another to so do, without the consent of a party to such conversation or discussion.
3. Intentionally intercepts the deliberations of a jury or aids, authorizes, employs, procures or permits another to so
do.
B. Except as provided in sections 13-3012 and 13-3017, a person who intentionally and without lawful authority
installs or uses a pen register or trap and trace device on the telephone lines or communications facilities of another
person which are utilized for wire or electronic communication is guilty of a class 6 felony."
Src: http://www.azleg.state.az.us/ars/13/03005.htm

 

[tomkat]

More questions

The statute states that in cases involving amounts over $500 a written contract was needed, UNLESS the defendant admits in court that a contract was made. Wouldn't the taped admission be enought for that?? I mean, if I play the tape in court how can the defendant say there was no contract without being liable for perjury??? Everyone in the court would hear him making the contract with me!! Also, I have sold these identical laptops on Ebay and know there value VERY well, so it would be no problem for me to bring in MANY documents of finished and current auctions to set a value on the laptops, as I do have a list of the exact laptops he was going to sell me. I realize this may be a lost cause, but it just burns me that some people do not stick to their agreements and I want this person to learn to honor his word!

 

[I AM ALWAYS LIABLE]

My response:

Give it a shot. What do you have to lose ? Do not let on that you have a tape recording. Get him to lie in court, under oath.

Tell the judge, "Your Honor, the defendant and I had a verbal agreement to buy and sell computers."

Then, when the defendant chimes in and says, "Oh, no we didn't ! I NEVER agreed to anything, for any amount."

Then say, "Your Honor, I can prove my allegation and that the defendant has just now committed perjury."

Press the "Play" button.

Good luck to you.

IAAL