questioner_12
Junior Member
What is the name of your state (only U.S. law)? Penn
I am posting this for my housemate. He buys, repairs and sells lawn tractors. Back in the middle of Feb of this year he was contacted by a person that lives in Canada but has a home in NY also. She and her daughter wanted to buy two of his tractors. They sent him a $100 deposit to hold two tractors for them and said they would come down in mid March to pick them up. They live about 90 minutes from us in NY but like I said also have a home in Canada. They came down, looked at the tractors sometime in March after he received the $100 deposit. At that time they changed their minds as to which ones they wanted. All three agreed on the selection of tractors. However they did not come with a trailer to take them back with them so gave my friend more money $600 about.
They said they would be back in a couple weeks with a trailer to pick them up. Meantime, they came down a month later without a trailer and decided on other tractors etc. Again, agreed upon by all three; my housemate and the two buyers (mother and daughter). More money was given to my house mate. Now there is a balance of $810 due to finish the sale. They were supposed to come down twice over the past three weeks and postponed both times. In the meantime my housemate asked when they would be coming down to pick up the tractors so he could get the balance of the money and now they tell him that they said originally they would not be paying it until June. Well my housemate does not recall this. He could have sold these two tractors 5 times over by now to other people that have come to the house to look at others. He told these people that they are reserved for people that put down deposits.
There is nothing in writing in the way of a contract. Each time they gave my housemate a portion of a deposit they wrote out a receipt to have him sign it. The problem is now he is getting very nervous because they keep coming up with excuses as to why they can't come down and pick them up and give him the final due amount of $810. It is getting to the point where if this transaction fails in any way my housemate won't be able to sell them this summer because of the time of year. No one is going to want to buy a lawn tractor come the end of July and if they do the prices would come down. It would be like trying to sell a snowblower for top dollar in July. Anyway, the last time my housemate spoke to the mother (buyer) she said then fine just send me back my total deposit.
So my question here is at what point (since no signed contract) is the time where it is not considered to be "within a reasonable amount of time". Meaning, what if they drag this out until Sept/Oct. It is affecting his cash flow. Also, is my housemate obligated to send her back the deposit if he feels that they really are taking far too long to pick up the tractors and sells them to someone else and keeps the deposit. Isn't the entire idea of a deposit a binding contract of some type stating "I am giving you money to hold this property and I will pay the balance. I am giving you this money in good faith so you don't sell them to someone else". If he has to give back the deposit then what is the sense of accepting a deposit in the first place?
Any ideas or advice would be appreciated. If you have any more questions please let me know.
Thank you.
I am posting this for my housemate. He buys, repairs and sells lawn tractors. Back in the middle of Feb of this year he was contacted by a person that lives in Canada but has a home in NY also. She and her daughter wanted to buy two of his tractors. They sent him a $100 deposit to hold two tractors for them and said they would come down in mid March to pick them up. They live about 90 minutes from us in NY but like I said also have a home in Canada. They came down, looked at the tractors sometime in March after he received the $100 deposit. At that time they changed their minds as to which ones they wanted. All three agreed on the selection of tractors. However they did not come with a trailer to take them back with them so gave my friend more money $600 about.
They said they would be back in a couple weeks with a trailer to pick them up. Meantime, they came down a month later without a trailer and decided on other tractors etc. Again, agreed upon by all three; my housemate and the two buyers (mother and daughter). More money was given to my house mate. Now there is a balance of $810 due to finish the sale. They were supposed to come down twice over the past three weeks and postponed both times. In the meantime my housemate asked when they would be coming down to pick up the tractors so he could get the balance of the money and now they tell him that they said originally they would not be paying it until June. Well my housemate does not recall this. He could have sold these two tractors 5 times over by now to other people that have come to the house to look at others. He told these people that they are reserved for people that put down deposits.
There is nothing in writing in the way of a contract. Each time they gave my housemate a portion of a deposit they wrote out a receipt to have him sign it. The problem is now he is getting very nervous because they keep coming up with excuses as to why they can't come down and pick them up and give him the final due amount of $810. It is getting to the point where if this transaction fails in any way my housemate won't be able to sell them this summer because of the time of year. No one is going to want to buy a lawn tractor come the end of July and if they do the prices would come down. It would be like trying to sell a snowblower for top dollar in July. Anyway, the last time my housemate spoke to the mother (buyer) she said then fine just send me back my total deposit.
So my question here is at what point (since no signed contract) is the time where it is not considered to be "within a reasonable amount of time". Meaning, what if they drag this out until Sept/Oct. It is affecting his cash flow. Also, is my housemate obligated to send her back the deposit if he feels that they really are taking far too long to pick up the tractors and sells them to someone else and keeps the deposit. Isn't the entire idea of a deposit a binding contract of some type stating "I am giving you money to hold this property and I will pay the balance. I am giving you this money in good faith so you don't sell them to someone else". If he has to give back the deposit then what is the sense of accepting a deposit in the first place?
Any ideas or advice would be appreciated. If you have any more questions please let me know.
Thank you.
