Re: (e36) Breach of Contract

[Compucepts@xxxxxxx]

ahmad said: 

>I just put a deposit on a 94 325ic and the lady called me back saying that
>she sold it to someone else at a higher price. I am threatening to seek
>counsel if she doesn't change her mind since we have a legal binding
>agreement and she also has my deposit.
>
>Does anyone know if I am legally covered here? How can she sell to someone
>else if she already signed with me and taken my deposit?

Ahmad, 

I am guessing that you have absolutely nothing in writing, which does not help
your case at all. In terms of a legally buying agreement the Uniform
Commercial Code would apply here, except for sale of goods over $500. The
statute of frauds says that verbal agreements are not binding for sale of
goods over $500. Most judges however attempt to go around the Statute of
Frauds because it is so unfairly slanted. There are exceptions to the statute
of frauds. In order to have a valid contract you have to have an offer,
acceptance of that offer, and benfefit/detriment to both parties. It seems
that you have offer and acceptance, and you have the detriment of having given
her the deposit. She also has the benefit of a guaranteed purchaser, so it
seems you have a valid agreement. I would argue that "promissory estoppel"
would exist here, and she is not allowed to break the contract even though the
statute of frauds exists because you relied on the contract and possibly gave
up other cars because of your contract with her. Either way, taking your
deposit is theft, and if she never intended to give you the car, then it is
fraud. I would talk to her first though, it would take you so long for legal
action that you won't want the car by the time you win in court, and you won't
be able to afford the car by the time you get done. 

Disclaimer: I am not a lawyer and I don't play one on the Internet, but I do
know "a bit" about the law. Talk to a lawyer if you haven't already to get a
professional opinion and if there is a lawyer on the list who read this and
thinks I am a jackass, you are probably right so spit it out. Flame away.

David Koretz
'93 325i sharked
BMWCCA #161655

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