Bill of Sale

[budrock1]

My jurisdiction is: California

I planned on purchasing a horse and received a bill of sale from the owner.
The sale amount was $1500 and the due date for the payment is December 12, 2008. The owner gave me the bill of sale before I paid him anything. A week after getting the bill of sale, I gave the owner $500 towards the purchase price and started paying board for the horse. Unfortunately, I developed some significant financial issues. I spoke with the owner and told him that due to these issues, I would not be able to purchase the horse.
He got very angry and told me that the horse was now his and he was keeping the $500 because I had broken the contract.

There was never a contract, nor was there any agreement as to a cancellation fee.

Since the date the payment is due December 12, 2008, does this mean that the horse is still his until this date? Does he have a right to keep the $500?

 

[Michael Wechsler]

1) This might be too late but it's difficult to say what your deal is. It seems that once you've agreed to pay $500 you've already begun to perform on a contract, no?

2) Regarding the $500, I would say that the owner has no right to keep it as "liquidated damages" but he could keep some amount to cover any losses he might have with regard to the horse. Unfortunately you may need to sue him in small claims to get it back, from what it sounds like with your story. Good luck.