Legal Question in Consumer Law in Massachusetts

Almost purchasing a car

I live in MA and my question asks whether or not I would be entitled to receive my full deposit back. I planned on buying a car from a private seller. I left a $200 deposit out of $1100 price. Our written agreement was to transfer ownership on 3/14 and then the seller asked for an extension of 2days over the phone which I agreed to. That time came and went and within a day of that I left a message to cancel the sale and receive my deposit back. It was never said that it was non-refundable. Two messages and a week later the seller contacted me saying that they didn't have to give the deposit back. We couldn't reach a resolution. So who is entitled to the deposit?


Asked on 3/24/07, 9:04 pm

2 Answers from Attorneys

Craig J. Tiedemann Kajko, Weisman & Colasanti, LLP

Re: Almost purchasing a car

Its a close call, which probably doesn't have a definitive answer, but the merits appear to favor your side. Assuming the contract did not explain why the deposit was paid, you can probably assume it was given as your good faith intention to purchase the car on the terms you agreed to and spelled out in the contract, in exchange for the seller's agreement to take the car off the market. Under ordinary circumstances, you would probably be entitled to the return of the deposit only where you backed out of the sale for unforeseen reasons (e.g., you learned the car had been in a previous accident, which the seller didn't disclose, etc.).

Here, the seller sought to extend the time for the contemplated sale - thereby modifying the contract terms -- and you initially agreed. However, it might be reasonable to argue that you were put on the spot and not afforded sufficient time to contemplate the consequences of your agreement to extend, or the seller's motives for requesting the additional time. And, it was probably reasonable for you to request the return of the deposit the next day, especially if you became suspicious of the seller's motives for the requested delay. (Why would a person who wants to sell a car delay the sale for a few days, except to see if he can get a better price from anothe rbuyer?)

If the seller was, in fact, using the extra time to see if he could sell the car for more to someone else, he intentionally breached the contract with you (he promised to take the car off the market once you paid your deposit). If he asked you to extend the time to give himself opportunities to shop for a better deal, and then kept your deposit on grounds you tried to back out of a contract he had already breached, he arguably committed fraud. Proving fraud would make you eligable to receive 2 or 3 times your actual damages (i.e., $400 or $600), plus recovery of your attorneys fees.

If you have reason to believe he defrauded you, I could probably help you get your money returned by sending a letter outlining your legal remedies and threatening a lawsuit. Contact me if the facts would support such a claim and you're interested in having me pursue this, at least in the initial stages, for you.

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Answered on 3/26/07, 10:32 am
Maria Murber Law Offices of Maria Murber, PC

Re: Almost purchasing a car

You should file a small claims action. You should be entitled to a refund. He/She has breached the contract. First, it was in writing. Secondly, you gave him/her a reasonable time to cure by giving an oral agreement to extend for two days, which was reasonable. Lastly, he/she breached the contract again. File a small claim action.

Good luck! Sincerely, Maria Murber

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Answered on 3/25/07, 10:53 am


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