Buyer broke contract

[Jrhammo08sxt]

What is the name of your state (only U.S. law)? Pennsylvania

I entered into an agreement with a buyer. He broke contract. Contract stated $$ is due at the signing of sale agreement and $$ is due in 6 months. Buyer never came up with the second $$ and now wants the first $$ paid back to him. This was specifically not a down-payment. It is stated as part of the purchased price. Seller did not break contract, buyer did break contract by not paying the rest of the money within 6 months. Does the seller have to pay the buyer back?

Here is the wording of the first part of the agreement:
II. $2500.00 due to the seller in the form of cash or cashier’s check upon the signing of this contract. Prior to commencement of building deconstruction, full balance (remaining $17,500.00) of purchase shall be paid to the seller in the form of cash or cashier’s check. Building deconstruction will commence within 6 months of contract being signed, and will be concluded at the time purchaser informs the seller of completion, or within one and a half (1.5) years; whichever comes first. Length of time to be finished with deconstruction and removal of desired items may be extended by seller in the event of extenuating circumstances, to the seller’s disclosure. If time is to be extended, buyer and seller will set terms and sign an addendum to this contract.

 

[justalayman]

What are your provable damages?

Generally when a contract is rescinded money returns to whomever paid it. If there was action take due to the contract the party with damages may have a claim, depending on why the contract was breached or rescinded. In your situstion I surely hope there is much more to your contract and hopefully a clause that addresses a breach by either party. You would likely be best served by taking your contract to an attorney who can read it in its entirety and advise you.

 

[LdiJ]

What is the name of your state (only U.S. law)? Pennsylvania

I entered into an agreement with a buyer. He broke contract. Contract stated $$ is due at the signing of sale agreement and $$ is due in 6 months. Buyer never came up with the second $$ and now wants the first $$ paid back to him. This was specifically not a down-payment. It is stated as part of the purchased price. Seller did not break contract, buyer did break contract by not paying the rest of the money within 6 months. Does the seller have to pay the buyer back?

Here is the wording of the first part of the agreement:
II. $2500.00 due to the seller in the form of cash or cashier’s check upon the signing of this contract. Prior to commencement of building deconstruction, full balance (remaining $17,500.00) of purchase shall be paid to the seller in the form of cash or cashier’s check. Building deconstruction will commence within 6 months of contract being signed, and will be concluded at the time purchaser informs the seller of completion, or within one and a half (1.5) years; whichever comes first. Length of time to be finished with deconstruction and removal of desired items may be extended by seller in the event of extenuating circumstances, to the seller’s disclosure. If time is to be extended, buyer and seller will set terms and sign an addendum to this contract.

Have you run that contract by an attorney? The way that it reads you would be able to be paid in full without having even started the work. That is NOT a normal contract at all for the construction (or deconstruction) industry. Normally you would get paid in stages, something to start, something a couple of stages into the projects and the rest upon completion of the project. On top of that your amount of time to complete the project is abnormally long.

If that is the standard contract you intend to use you may find that you will have a hard time getting work, and that this will not be the only client who backs out on you. I would advise anyone who signed that kind of contract to back out of it.