Breach of verbal contract on car sale ??

What is the name of your state? CT

I agreed to sell my car to a neighbor for $500. She gave me $300 cash, and is in possession of the car, but I have retained the title and key. I agreed to deliver the key and title in exchange for the rest of the money - $200.

Now she's saying that she doesn't want to buy the car, but I do NOT want to have to give her the money back. It's been about a month or so (due to her and I not being able to get together, on both of our parts) and the money is long gone.

What are my rights/options?

The money is not yours.

terriberri506 said:

What is the name of your state? CT

I agreed to sell my car to a neighbor for $500. She gave me $300 cash, and is in possession of the car, but I have retained the title and key. I agreed to deliver the key and title in exchange for the rest of the money - $200.

Now she's saying that she doesn't want to buy the car, but I do NOT want to have to give her the money back. It's been about a month or so (due to her and I not being able to get together, on both of our parts) and the money is long gone.

What are my rights/options?

Click to expand...

**A: then sign the title over, give her the key you have and retain lien rights in the amount of $200 similar to what a lender would do.

terriberri506 said:

What is the name of your state? CT

I agreed to sell my car to a neighbor for $500. She gave me $300 cash, and is in possession of the car, but I have retained the title and key. I agreed to deliver the key and title in exchange for the rest of the money - $200.

Now she's saying that she doesn't want to buy the car, but I do NOT want to have to give her the money back. It's been about a month or so (due to her and I not being able to get together, on both of our parts) and the money is long gone.

What are my rights/options?

Click to expand...

Legal Answer: The sale of goods for $500 or more must be in writing to be binding in court (with some "unless" exceptions that may or may not apply). Considering that she does not have the title or the key, you probably haven't even partially performed on the contract (though it's not certain). I agree with seniorjudge that legally speaking you must return the money. However, if a court decided that you partially performed, it may enforce the verbal contract.

Real Life Answer: Tell the neighbor that you don't have the money, but that you'll sell the vehicle to somebody else and pay her with the proceeds.