Legal Question in Civil Litigation in California
Oral Contracts
do i have recourse in small claims court and any chance of winning? in late dec 2001 i had put my 1985 MBZ car for sale a businessman responded we met he liked the car we made arrangments to meet again in a few days.we did meet two other times he brought his son and daughter that drove the car and liked it.we met 2 more times reviewed the service records spoke to my mechanic.the person knew that i needed $7000and that i refused a prior offer of $6500.on our last meeting he offered $5000.irefused and drove off.he called me on my cell telephone and pleaded for me to accept$6500.i accepted we made arrangmens for me to deliver the car to his business and he would pay me the money in cash.the next day he calls me says he needs to leave town for a few days emergency.i agreed tellling him the car is parked and waiting.a week later i call him and he is refusing to honor his oral agreement.i have demanded $650.00 in compensatory damages.i stopped marketing the car.do i have recourse?
4 Answers from Attorneys
Re: Oral Contracts
Yes, but oral agreements are tough to prove. If the court believes you, and if you have resold the car, your damages are the extra ad costs and the loss on sale below $6500. You must resell the car to get these damages, and at a loss. Obviously, if you resell at $6500 or more, your damages are limited to the new ad costs. Next time get a cash deposit to hold any car - or follow the time established rule in selling cars of "He who gives you the gold you want first gets the car."
Re: Oral Contracts
Thanks for your posting. Remember that you have an ongoing duty under the law to mitigate, or minimize, your damages. That means that if you intend to sell the car, you must continue to keep it for sale. If you do sell it, then your damages are limited to the difference between actual sale price and the sales price of $6,500.00, plus you get to recover your costs.
Remember also, small claims court has a limit of $5,000.00.
Re: Oral Contracts
You have recourse, but if he denies that there was ever an oral agreement... what proof do you have that such an agreement existed?
Burden of proof is on you.
Re: Oral Contracts
Oral Contracts are valid. They are just harder to prove. I suggest you file an action in small claims court to recover the money you believe you are owed.
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