Legal Question in Consumer Law in California
Sell of a vehicle by private party
I am a private party selling a vehicle. An indivdual put down a $500 deposit to hold the vehicle while he secured the remaining funds for the purchase. The sell fell through because he spent the funds on other expenses. Am I required to return the full deposit or any part of the deposit?
2 Answers from Attorneys
Re: Sell of a vehicle by private party
Did you have an agreement with him? Did you tell him it was non-refundable? If you did, you can keep it. You may get sued in small claims court.
I am guessing you had no agreement. Therefore, you need to give him back the deposit.
Re: Sell of a vehicle by private party
If he breached a contract and you suffered damages as a result, you could be entitled to an amount of actual damages. If you guys entered into an option contract, you might be entitled to some or all of the $500.
However, you are not allowed to just keep it as a prize for you or as a punishment to him.
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