Legal Question in Real Estate Law in Michigan

I know someone that purchased a car for a employee. The cars title and registration is in the employee's name. The employee has verbally agreed to pay for the car and has been making payments. The working relationship with the employer and employee has disaggregated and have quit. The employee still states that they will continue paying for the car but the employer is demanding the balance of the car payment or the car. They are planing to file a lawsuit against the ex-employee on Monday October 25, 2010.

The car was purchased for around 8900.00 the ex-employee has paid around 5200.00.

What legal action is available to the ex-employer if anything?


Asked on 10/23/10, 5:18 pm

1 Answer from Attorneys
Shelly Schellenberg MI & FL private practice

Both parties will have to either prove the actual contractual terms of the car purchase/sale, or convince the court that their version of the oral agreement is true, or at least more plausible.

If the car's title and registration is in the employee's name, then the employee simply owes the balance to his ex-employer, assuming that the employer paid for the car in full. If there is a lien on the car, then the employee would be smart to make the payments directly to the lien holder.

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Answered on 10/29/10, 6:07 am


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