Breach of agreement to purchase.

[BoredAtty]

I agree with BoredAtty in detail, but point out that it is difficult to find a market price for a used item. To calculate the fmv of a used item, zinger's point about how much the vehicle sold for is valid. An arms-length sale soon after the breach is a good proof of value.

The general rule is to look at the price of a reasonable substitute. The fact that the item is used shouldn't make a difference. If you breached a contract to sell me your 2003 BMW with ~50k miles, I can show its market value by finding other 2003 BMWs with ~50k miles for sale.

If there are no reasonable substitutes such that it is difficult to determine the market value of an item, then I agree that the sale of the actual item is one way to attempt to prove market value. However, even when no substitutes exist, a recent sale is certainly not conclusive proof of market value.

 

[tranquility]

Once again, I agree, but what is the cover when all you can find is the RV that has an extra widget on it? Cover must be reasonable. If I got cheated out of a 1960 Corvair, I can't cover with a "car", or a "ford" or a 1960 "car", or even a 1960 Corvair, but one with similar features and use. Because I didn't breach, I have some leaway, but I say again, a good proof of FMV is an arm's length sale around the time of the breach.

Info edit:
Your answer was posted during the time when I was writing, so the above can be ignored. However, while not "conclusive", the other side will have to come up with a darn good set of facts to say the exact same thing's selling price is not as good a determination as an entirely different thing in a different market.

 

[BoredAtty]

However, while not "conclusive", the other side will have to come up with a darn good set of facts to say the exact same thing's selling price is not as good a determination as an entirely different thing in a different market.

Agreed, but I think we've strayed from the issue in this thread.

The bottom line is that if the OP can buy a reasonable substitute RV elsewhere for more money, but choses not to, he is still entitled to the difference between the substitute RV's price and the contracted price, regardless of the selling price of the original RV in question.

 

[Cannon Ball]

Contrasting views always makes things interesting.

Let me place some real numbers (rounded value) to the situation.
The agreed purchase price was $16,000. plus additional shipping and doc fees for a total of $16,750. This was to be shipped to an agreed location. The cheapest used equivalent that I found (same model/options and year) is $20,000. It is at a location that is further away, so with shipping to the same location it will be $22,700. NADA which prices market value for used RVs places the price (with the equiped options) at a low of $19,500. to a high of $22,200. Through pictures I am easily able to show that the unit I was to purchase is in less used condition then the other used comparison. They sold the RV to the other buyer for the price of $16,000.
I have saved copies of what other comparable (same year/make/model) are selling for in todays market in case it ends up being some time in the future before this case goes to trial.
Would legal fees paid on my part also be part of the settlement, if this went to trial and was found to be a breach of contract? Is arbitration an option in cases such as this?

Additional thought: If I could find the same item, in the same market area, for sale for the same price, I would purchase it and be done.
As the only other comparisons are in a different location is it fair to calculate using their shipping rate to the same final destination?

C.B.

 

[BoredAtty]

Sounds like you may have a decent small claims case. If I were you, I'd go that route since you cannot get a judgment for attorney's fees as part of your damages. The additional cost for shipping, however, would be part of your damages.

 

[Cannon Ball]

Do you know what dollar limit exist in the State of Michigan for small claims court?

Found the information. Looks like I am limited to $3000. as a max. claim in small claims court.