What are my options?

[sernst]

Pennsylvania
I reached an agreement on Jan 6 2001 to sell a vehicle to an individual, after we agreed to the price of the vehicle the buyer requested that I hold the vehicle untill he got his tax refund. We discussed the time frame and I stated my concern that I would face additional insurance costs if the time frame went past the end of Feb.. We signed a written agreement stating that he would purchase the vehicle upon receit of his tax refund. Since signing the agreement the buyer has moved without notifying me, and has not contacted in any way. I sent him several letters asking if there was a problem, the last letter which I sent registered mail I included an agreement that ask him to release me of any obligation of the sale since he failed to respond to my previous letters. What are my options? I mainly want to be able to proceed with the sale of the vehicle to someone else. What steps do I need to take to prevent any liability to the original agreement? Thanks

 

[I AM ALWAYS LIABLE]

My response:

Using ficticious names, please quote the exact language in the written agreement.

IAAL

 

[sernst]

The exact language of the agreement is as follows with the exception of the names:
I Bill Smith have an agreement with Joe Smith to purchase a 1988 Ford Bronco II for the price of $2500.00 when I receive my income tax check.

Signature Date

Signature Date

 

[I AM ALWAYS LIABLE]

Pennsylvania
I reached an agreement on Jan 6 2001 to sell a vehicle to an individual, after we agreed to the price of the vehicle the buyer requested that I hold the vehicle untill he got his tax refund. We discussed the time frame and I stated my concern that I would face additional insurance costs if the time frame went past the end of Feb.. We signed a written agreement stating that he would purchase the vehicle upon receit of his tax refund. Since signing the agreement the buyer has moved without notifying me, and has not contacted in any way. I sent him several letters asking if there was a problem, the last letter which I sent registered mail I included an agreement that ask him to release me of any obligation of the sale since he failed to respond to my previous letters. What are my options? I mainly want to be able to proceed with the sale of the vehicle to someone else. What steps do I need to take to prevent any liability to the original agreement? Thanks



The exact language of the agreement is as follows with the exception of the names:
I Bill Smith have an agreement with Joe Smith to purchase a 1988 Ford Bronco II for the price of $2500.00 when I receive my income tax check.

Signature Date

Signature Date

My response:

Thank you for responding.

First, I see nothing in the agreement that talks about whether or not his "moving" voids the contract - - so, that's not a reason for voiding the contract; i.e., moving does not stop him from completing the contract from anywhere in the world.

Second, your agreement specifically states that he must complete the contract ". . . when [he] receives [his] income tax [refund] check."

Has he ? Do you know ? As of this date, most people haven't even filed their taxes yet, let alone receive a tax refund.

The biggest problem that I see is that you never required a non-refundable downpayment. So, you really have no remedies in your contract.

Therefore, you're still obligated to hold the vehicle for him for a reasonable period of time (perhaps 45 days) after April 16, 2001, to give him time to receive his "refund check". If, after that time, he has not made good on his promise to you, I would consider the contract breached. And, if that's the case, you'd be free to sell the vehicle to someone else, or to sue him for "specific performance".

IAAL