Consumer Law, Warranties Vehicle Deposit Refundability

[poodles]

I posted an ad to sell a customized commercial vehicle. A buyer, out of state, asked if I would hold the van if she sent a deposit and I agreed, as I preferred to have time to close the business anyway. She sent a check and we both signed a deposit receipt which specified the selling price and the closing date (which was approximately six weeks from her initial contact). Approximately a week before the closing date, I closed the business, removed the graphics from the vehicle, and cleaned it. However, when the date came around, she still had not contacted me about delivery and when I emailed, she said she was still waiting. Originally she told me that she was expecting settlement on an estate, but at this point told me that she had applied for a loan from a bank in case the estate took too long. I asked her then if this was an "IF" or a "WHEN" and she said "when" as she intended to purchase the vehicle, and should have the money in a couple of weeks. Two weeks later she informed me that she had been turned down for the loan and that the settlement might still be a few weeks away. I informed her that I had closed the business and it would be difficult for me to continue waiting because I still have a loan on the vehicle and continue to make payments in the meantime. She said she understood, I could sell it to someone else, and send her deposit back.

My question is, is she entitled to the deposit back? Although I am not trying to steal her money, I don't understand what the point of the money was if now, two months later she can simply say nevermind and ask for it back (with me having told multiple potential buyers that the vehicle was sold).

The purchase price is in the tens of thousands, the deposit in the thousands, and the monthly payment over a thousand if that is relevant.

 

[army judge]

If any of this was in writing, you can keep the deposit as liquidated damages.
This is allowed under contract law.
It isn't meant to punish the person who breached (the potential purchaser), or to enrich the seller.

If it isn't in the contract, and you seek damages, they are recoverable "at large".
That would mean by civil suit.

If it isn't in a contract, she'll sue you for keeping her deposit.

You stayed the sale, at your own volition.
She might be said to have induced you, but you stayed the sale nonetheless.
Had you been able to find another buyer, you no doubt, would have sold the vehicle.

Bottom line, keep her money, and she'll sue you.
Besides, giving her back her money is not only the legal thing to do, its the right thing to do!

 

[poodles]

I'm a bit confused by your response.

It is in writing, however whether or not the deposit is refundable or not is not explicitly stated--just the amount paid, amount due, and when.

I have not considered selling it to anyone else until this most recent contact when I really began to doubt if she would have the money any time in the near future. Although it is impossible to say whether the other inquirers would have purchased the van or not, I think it is highly likely.

I was, as I said, more than willing to not have her take possession immediately, however I am frustrated because my entire life has be altered based on the sale of this vehicle and now what I thought was done has become completely uncertain.

Since it seems the "right thing to do" is very clear to you, could you tell me? Should I say I will continue waiting? Should I attempt to begin negotiations with another potential buyer?

 

[army judge]

I'd look for another buyer.
If you keep her money, she'll probably sue you.
I know she'll hound and annoy you!
It'll be hard for her to sue you, however.
She resides out of state, according to your post.
So, she can only sue you in Nebraska.
A court from another state, would have no jurisdiction over you.
Once she realizes that, she might decide not to sue you.
It might cost her much of what she could recover.

You may have had what you call a contract.
If your contract had no liquidated damages clause, you can't just legally keep her deposit.
That isn't confusing.
That is very clear.