Can I sue for breach of contract?

[adrimore128]

What is the name of your state (only U.S. law)? I live in South Carolina, person I may sue lives in North Carolina

My husband and I recently sold our used car to a private party. My husband knows the guy's girlfriend and so he agreed to a 500 down payment and two more installments for a total purchase price of $2000. Upon full payment, we would surrender the title to him. We typed up a bill of sale stating the following:

BILL OF SALE: MOTOR VEHICLE

Seller Name: xxxxxxxxxx
Seller Address: xxxxxxxx

Buyer Name & Address: xxxxxxxxx

In consideration of $2000.00 in 3 installments:

$500.00 paid today
$1,000.00 due 5/13/13
$500.00 due 5/26/13
the seller does hereby sell, transfer and convey the following motor vehicle to the buyer:

Make: Hyundai
Model: Elantra GLS
Year: 2003
VIN: xxxxxxxxxxxxxxxxxxx
Color: Grey
Mileage: 164,300

The seller hereby acknowledges the collection of funds and certifies that the information provided herein is true and accurate to the best of their knowledge.

The seller warrants they are the legal owner of said vehicle.

The buyer understands that there is no guarantee or warranty, expressed or implied, for this vehicle or any items included with the transfer of this vehicle. The vehicle is sold in "AS IS" condition.

Buyer agrees to register the vehicle in his name with the North Carolina Department of Motor Vehicles within one week.

Seller signature: XXXXXXXX Date: 5/7/13
Buyer signature: XXXXX 5/7/13
Witness signature: XXXXXX 5/7/13

The buyer took the car but then the next day, late at night, decided he wanted to "return the car," drove to our house, left it in our driveway and texted my husband saying it was there and he did not want it claiming it was more than he expected in fees to title and register it. (NOT MY FAULT!) The first check he gave us has also bounced, resulting in a fee on our end.

We went back and forth via text today and when we said it was legally binding, he said he had sought counsel and was told he is not contractually obligated because of "one part" of the agreement. I'm not sure what he meant. My husband was the only one who met with him and I signed at home, then he brought the contract to the buyer and he signed it in NC. I never met him. The car is titled and registered in my name. Did I have to be there to sign in front of him?

Can I sue given this bill of sale? Also, he now is backtracking saying he will give us $1500 because he "doesn't like courts" but that he are illegally removing the tag. He basically wants our tag to stay on. I've explored this all over, and I understand that the tag is registered to the owner not the vehicle and I must either turn it in to the DMV in my state or transfer it to another vehicle I purchase (with fees of course via DMV).

Can anyone advise me here? I kind of want to take him to court now but I don't know if there is something obviously wrong that would make me lose and end up with added court fees.

Thanks!

 

[sandyclaus]

What is the name of your state (only U.S. law)? I live in South Carolina, person I may sue lives in North Carolina

My husband and I recently sold our used car to a private party. My husband knows the guy's girlfriend and so he agreed to a 500 down payment and two more installments for a total purchase price of $2000. Upon full payment, we would surrender the title to him. We typed up a bill of sale stating the following:

BILL OF SALE: MOTOR VEHICLE

Seller Name: xxxxxxxxxx
Seller Address: xxxxxxxx

Buyer Name & Address: xxxxxxxxx

In consideration of $2000.00 in 3 installments:

$500.00 paid today
$1,000.00 due 5/13/13
$500.00 due 5/26/13
the seller does hereby sell, transfer and convey the following motor vehicle to the buyer:

Make: Hyundai
Model: Elantra GLS
Year: 2003
VIN: xxxxxxxxxxxxxxxxxxx
Color: Grey
Mileage: 164,300

The seller hereby acknowledges the collection of funds and certifies that the information provided herein is true and accurate to the best of their knowledge.

The seller warrants they are the legal owner of said vehicle.

The buyer understands that there is no guarantee or warranty, expressed or implied, for this vehicle or any items included with the transfer of this vehicle. The vehicle is sold in "AS IS" condition.

Buyer agrees to register the vehicle in his name with the North Carolina Department of Motor Vehicles within one week.

Seller signature: XXXXXXXX Date: 5/7/13
Buyer signature: XXXXX 5/7/13
Witness signature: XXXXXX 5/7/13

The buyer took the car but then the next day, late at night, decided he wanted to "return the car," drove to our house, left it in our driveway and texted my husband saying it was there and he did not want it claiming it was more than he expected in fees to title and register it. (NOT MY FAULT!) The first check he gave us has also bounced, resulting in a fee on our end.

We went back and forth via text today and when we said it was legally binding, he said he had sought counsel and was told he is not contractually obligated because of "one part" of the agreement. I'm not sure what he meant. My husband was the only one who met with him and I signed at home, then he brought the contract to the buyer and he signed it in NC. I never met him. The car is titled and registered in my name. Did I have to be there to sign in front of him?

Can I sue given this bill of sale? Also, he now is backtracking saying he will give us $1500 because he "doesn't like courts" but that he are illegally removing the tag. He basically wants our tag to stay on. I've explored this all over, and I understand that the tag is registered to the owner not the vehicle and I must either turn it in to the DMV in my state or transfer it to another vehicle I purchase (with fees of course via DMV).

Can anyone advise me here? I kind of want to take him to court now but I don't know if there is something obviously wrong that would make me lose and end up with added court fees.

Thanks!

It seems that your buyer may have found the one thing that might actually invalidate the sale. As the vehicle is solely titled in YOUR name and not your husband's name, and since your husband is the only one named on the bill of sale, the buyer can argue (validly) that the sale is void. Your husband did not own the vehicle, and had no legal authority to sell it without your signature. He cannot legally enter into a contract to sell a vehicle he doesn't own.

I suggest that you accept the counter offer for the $1500 and re-draft the agreement to include YOUR name and signature. I would also suggest that, since they chose to place a stop payment on the first check, you ask that any payment given is in guaranteed funds (bank check or cash), and that you include a repossession clause that allows you to take back the vehicle in the event that any payments are not timely made.

 

[adrimore128]

It seems that your buyer may have found the one thing that might actually invalidate the sale. As the vehicle is solely titled in YOUR name and not your husband's name, and since your husband is the only one named on the bill of sale, the buyer can argue (validly) that the sale is void. Your husband did not own the vehicle, and had no legal authority to sell it without your signature. He cannot legally enter into a contract to sell a vehicle he doesn't own.

I suggest that you accept the counter offer for the $1500 and re-draft the agreement to include YOUR name and signature. I would also suggest that, since they chose to place a stop payment on the first check, you ask that any payment given is in guaranteed funds (bank check or cash), and that you include a repossession clause that allows you to take back the vehicle in the event that any payments are not timely made.

Thank you so much for your response! I'm sorry I wasn't clear - the Bill of sale Shows MY name as the "Seller" . My husband's name is not on there at all, except at the bottom as a "witness." The bill of sale shows me selling it to the buyer, I signed it at home and my husband met with the guy who signed it as well. I was just never physically in the same room with the guy while signing. My husband signed as a witness. Does that change anything?

 

[OHRoadwarrior]

The problem you have is that is not a complete contract. Aside from registering the vehicle, it does not specifically obligate him to anything clearly. Further, it provides for no penalty if he does not perform.

 

[justalayman]

The problem you have is that is not a complete contract. Aside from registering the vehicle, it does not specifically obligate him to anything clearly. Further, it provides for no penalty if he does not perform.

since when is a penalty clause required in a contract? as to obligating the buyer to do anything? Of course it does; pay an aggregate sum of $2000 in exchange for the seller giving them the vehicle and title.


I would take it to small claims court for the selling price of the vehicle as well as the costs associated with the bad check.



You might contact the police. I haven't the time to hunt the law down at the moment but stopping payment on a check is a criminal action in some states while others require the payee to give some form of notice and period to allow the payee to make good on the check before it is considered to be a criminal act. I don't how your state addresses the iissue offhand.

 

[TheGeekess]

What is the name of your state (only U.S. law)? I live in South Carolina, person I may sue lives in North Carolina

My husband and I recently sold our used car to a private party. My husband knows the guy's girlfriend and so he agreed to a 500 down payment and two more installments for a total purchase price of $2000. Upon full payment, we would surrender the title to him. We typed up a bill of sale stating the following:

BILL OF SALE: MOTOR VEHICLE

Seller Name: xxxxxxxxxx
Seller Address: xxxxxxxx

Buyer Name & Address: xxxxxxxxx

In consideration of $2000.00 in 3 installments:

$500.00 paid today
$1,000.00 due 5/13/13
$500.00 due 5/26/13
the seller does hereby sell, transfer and convey the following motor vehicle to the buyer:

Make: Hyundai
Model: Elantra GLS
Year: 2003
VIN: xxxxxxxxxxxxxxxxxxx
Color: Grey
Mileage: 164,300

The seller hereby acknowledges the collection of funds and certifies that the information provided herein is true and accurate to the best of their knowledge.

The seller warrants they are the legal owner of said vehicle.

The buyer understands that there is no guarantee or warranty, expressed or implied, for this vehicle or any items included with the transfer of this vehicle. The vehicle is sold in "AS IS" condition.

Buyer agrees to register the vehicle in his name with the North Carolina Department of Motor Vehicles within one week.

Seller signature: XXXXXXXX Date: 5/7/13
Buyer signature: XXXXX 5/7/13
Witness signature: XXXXXX 5/7/13

The buyer took the car but then the next day, late at night, decided he wanted to "return the car," drove to our house, left it in our driveway and texted my husband saying it was there and he did not want it claiming it was more than he expected in fees to title and register it. (NOT MY FAULT!) The first check he gave us has also bounced, resulting in a fee on our end.

We went back and forth via text today and when we said it was legally binding, he said he had sought counsel and was told he is not contractually obligated because of "one part" of the agreement. I'm not sure what he meant. My husband was the only one who met with him and I signed at home, then he brought the contract to the buyer and he signed it in NC. I never met him. The car is titled and registered in my name. Did I have to be there to sign in front of him?

Can I sue given this bill of sale? Also, he now is backtracking saying he will give us $1500 because he "doesn't like courts" but that he are illegally removing the tag. He basically wants our tag to stay on. I've explored this all over, and I understand that the tag is registered to the owner not the vehicle and I must either turn it in to the DMV in my state or transfer it to another vehicle I purchase (with fees of course via DMV).

Can anyone advise me here? I kind of want to take him to court now but I don't know if there is something obviously wrong that would make me lose and end up with added court fees.

Thanks!

Sell the car to somebody else for all the money upfront.

 

[OHRoadwarrior]

I concur on the cancelled check issue, I intentionally ignored that as I am not aware how NC generally handles those issues. That said, I suggest you review the instrument OP posted. It says "In consideration of $2000.00 in 3 installments:". Buyer has not made 3 installments. Therefore, seller has not incurred the legal obligation to transfer the title. That is all it really says. It then would logically follow, buyer is only required to transfer title within one week of meeting those conditions.

since when is a penalty clause required in a contract? as to obligating the buyer to do anything? Of course it does; pay an aggregate sum of $2000 in exchange for the seller giving them the vehicle and title.


I would take it to small claims court for the selling price of the vehicle as well as the costs associated with the bad check.



You might contact the police. I haven't the time to hunt the law down at the moment but stopping payment on a check is a criminal action in some states while others require the payee to give some form of notice and period to allow the payee to make good on the check before it is considered to be a criminal act. I don't how your state addresses the iissue offhand.

 

[tranquility]

It seems that your buyer may have found the one thing that might actually invalidate the sale. As the vehicle is solely titled in YOUR name and not your husband's name, and since your husband is the only one named on the bill of sale, the buyer can argue (validly) that the sale is void. Your husband did not own the vehicle, and had no legal authority to sell it without your signature. He cannot legally enter into a contract to sell a vehicle he doesn't own.

I suggest that you accept the counter offer for the $1500 and re-draft the agreement to include YOUR name and signature. I would also suggest that, since they chose to place a stop payment on the first check, you ask that any payment given is in guaranteed funds (bank check or cash), and that you include a repossession clause that allows you to take back the vehicle in the event that any payments are not timely made.

I completely disagree. I sometimes sell stock I don't own. (I think it is called a short sale.) Just because I do not own a thing does not mean I can't sell it.

This sounds like a contract to me.

 

[adrimore128]

The problem you have is that is not a complete contract. Aside from registering the vehicle, it does not specifically obligate him to anything clearly. Further, it provides for no penalty if he does not perform.

Thanks OHRoadwarrior. Please forgive my lack of knowledge here but doesn't his signature on the form, indicating specific due dates, bind him to actually make those payments, since it is a bill of sale?

 

[OHRoadwarrior]

Thanks OHRoadwarrior. Please forgive my lack of knowledge here but doesn't his signature on the form, indicating specific due dates, bind him to actually make those payments, since it is a bill of sale?

Not based on the way I read it. It simply shows he signed off his knowledge the dates and amounts were to be kept, if he wanted purchase the vehicle.

 

[swalsh411]

My advice would be to have nothing to do with these clowns (these payoff arrangements never work out anyway) and sell the car to somebody who can pay for all of it upfront.

Ask yourself, why can't these people get a car loan? Even from a buy here pay here place? It's because their credit suuuuuuuuuucks and they don't make good decisions with their money. What makes you think it would be any different with you?

If you decide to go through with this, in a few weeks you will be back because they didn't make any more payments.

 

[justalayman]

Buyer has not made 3 installments. Therefore, seller has not incurred the legal obligation to transfer the title.

actually, the way the contract is worded, they are required to transfer the title upon the first payment with the others to follow.

In consideration of $2000.00 in 3 installments:

$500.00 paid today
$1,000.00 due 5/13/13
$500.00 due 5/26/13
the seller does hereby sell, transfer and convey the following motor vehicle to the buyer:

It doesn't say upon the final payment or anything along those lines. Is says in consideration of [payment now and two to follow in the future] seller DOES HEREBY transfer and convery...

It then would logically follow, buyer is only required to transfer title within one week of meeting those conditions.

that week issue is a obligation on the buyer to transfer title within one week and with no date referenced, it would be presumed it is within one week from the date of the contract.

 

[OHRoadwarrior]

Even by your point, it does not obligate the buyer, only the seller. Generally, courts have held when a contract is vague, it is interpreted against the person who made the contract.

 

[justalayman]

Even by your point, it does not obligate the buyer, only the seller. Generally, courts have held when a contract is vague, it is interpreted against the person who made the contract.

It obligates the buyer to pay the money as stated in the contract if nothing else. If you want to argue the requirement to register it, go ahead but that will not invalidate the contract itself. I disagree with you but it is not something I am going to make a big deal about since in the end, that statement is irrelevant to the enforcement of the contract in whole.

 

[OHRoadwarrior]

It obligates the buyer to pay the money as stated in the contract if nothing else. If you want to argue the requirement to register it, go ahead but that will not invalidate the contract itself. I disagree with you but it is not something I am going to make a big deal about since in the end, that statement is irrelevant to the enforcement of the contract in whole.

I'm content to agree with disagreeing.