Gift Cards/Certificates

[crystalpsmith]

My husband and I received a gift card from a furniture store from the seller of our home in September 2004. Since we did not use it, when we sold our home we offered it as an incentive to the buyer. Upon receiving a contract in November 2005, we called the information number and was told there was a $2,000 balance and no expiration date.

On the morning of closing we called and the same information was presented. Upon closing on our house, the buyer took possession of the card. When attempting to use it, he was told it expired in December 2004.

Speaking to the furniture store, we were told it was bought at a discounted rate and they would only credit it $1,000. The buyer is now attempting to sue us for breach of contract.

Since based on the information we had, are we in breach of contract? Is the issue between the now card hold and the store? What recourse do we have with the store?

Thank you so much for your help!

 

[ibis]

Hey,

I'm not a lawyer. There may be things I am missing.

I see two avenues here. I think the important point is that it is not your faullt you couldn't meet the terms of the agreement. The third party who won't honor the gift certificate is the problem. You should stress to the buyer taht you were acting in good faith based on information the company gave you. If you can document that you talked to the company about the gift card and what they said , that woud be even better.

I'd also check your state laws about when a gift card expires. In some states (Washington, New Hampshire etc) gift cards can't expire. After all someone paid money for them. And not honoring a giftcard when someone paid money for it is wrong. Your state attorney general's office can tell you about the law.

 

[Michael Wechsler]

My husband and I received a gift card from a furniture store from the seller of our home in September 2004. Since we did not use it, when we sold our home we offered it as an incentive to the buyer. Upon receiving a contract in November 2005, we called the information number and was told there was a $2,000 balance and no expiration date.

On the morning of closing we called and the same information was presented. Upon closing on our house, the buyer took possession of the card. When attempting to use it, he was told it expired in December 2004.

Speaking to the furniture store, we were told it was bought at a discounted rate and they would only credit it $1,000. The buyer is now attempting to sue us for breach of contract.

Since based on the information we had, are we in breach of contract? Is the issue between the now card hold and the store? What recourse do we have with the store?

Thank you so much for your help!

Complicated stuff here! What I think makes or breaks this case is whether the "gift card" was a "gift" or "consideration" that was bargained for as part of the sale of the house.

To begin, was the gift card written into the contract as consideration for the home? I don't know what the circumstances were and how casual both of you were about language. Did you say "I think this gift card as $2,000 on it as of this morning and I'm glad to give this to you too" or was it something else? It sounds like it was a sum certain bargained for as part of the sale perhaps. But was it in the contract?

Regarding the gift card, what does the store mean that it was "bought at a discounted rate?" I would find out from them before giving up too easily. Did the seller of the home and former owner of the card, e.g. pay $1,000 with the ability to get $2,000 if you spent more than $5,000 by a certain date? Some of the advice given here is good and should be checked out concerning the "expiration" of gift cards and laws making it illegal for stores to make you lose the cash paid.

With regard to the "breach of contract" claim, it seems that the buyer of the home wants to say that this was part of the contract. It's debatable, especially if it isn't in the contract that the seller is trying to enforce.