Legal Question in Criminal Law in California

Is a receipt a legal contract

I went to a coin dealer to purchase 1oz gold coins. Upon arrival, owner told me he was currently out of stock. He said he had a shipment coming in. It was late, but should be in w/ in one week. he was uncertain if the shipment would arrive w/in that time. I ordered 7 of the coins. I was given a receipt for the order, I provided a check, and the only condition written on the receipt was the transaction would be voided in 1 week. There was no return policy on the receipt. The next day, I located another dealer who could provide me with the product immediately and for a better price. I ordered through the second dealer, cancelled my check with dealer #1, and called dealer #1 to say I was cancelling the order. Dealer #1 says the receipt was a contract, I can't cancel the order, and he's taking me to small claims to honor the contract. I don't have the money to do so, and I want to know if he has a valid case.


Asked on 10/21/08, 6:26 am

1 Answer from Attorneys
Edward Hoffman Law Offices of Edward A. Hoffman

Re: Is a receipt a legal contract

The receipt itself isn't a contract, but your agreement to purchase the coins for a specific price within a specific timeframe is. The receipt and the check are evidence of the contract, though the contract itself was probably oral.

The dealer has a valid claim against you. His damages will be the amount of profit he would have made on the deal, not the full price you agreed to pay.

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Answered on 10/21/08, 2:07 pm


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