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?


Asked on 5/21/07, 8:35 pm

2 Answers from Attorneys
Jonathan Stein Law Offices of Jonathan G. Stein

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.

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Answered on 5/22/07, 11:25 am
Benjamin Berger Berger-Harrison, A Professional Corporation

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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Answered on 5/22/07, 1:07 pm


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