Legal Question in Business Law in California

I was goi g to purchase a truck from a private party. I gave him a 500 deposit to hold the car. However some un foreseen events happened that I couldn't get the the truck. I told him I could not take it at this time and canceled my check. He however deposited the check and wrote other checks based on this amount he thought he had. However his checks bounced because my check was cancelled. Hey is trying to tell me we had a contract however I signed nothing. He wants the deposit of 500 and the fees for the bounced check. Help me


Asked on 2/18/11, 12:50 am

2 Answers from Attorneys
Joe Marman Law Office of Joseph Marman

It appears that the issue will become - Was there a valid contract to purchase. Oral contracts are enforceable, but it is difficult for the court to determine what the terms were. So, it is impossible to know what the exact terms of your transaction were. Best to give him a few hundred and have him call it even. If he will not accept it, let him sue you. You will say the contract was not actually completed.

Read more
Answered on 2/18/11, 8:59 am
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Sounds to me as though you had an enforceable oral contract to buy the truck; giving the deposit check is evidence of the contract and part performance thereof. Also, stopping payment on a check is permissible (legal) only if there is a bona fide dispute. You didn't have a dispute, you had a shortage of funds. You could become the subject of both civil and criminal complaints, and your best bet is to cover the seller's losses in a privately-negotiated settlement, with apologies.

Read more
Answered on 2/18/11, 9:49 am


Related Questions & Answers

More Business Law questions and answers in California