Legal Question in Business Law in Minnesota

Down Payment

How long can a person expect a company to hold money for a product? We took $1500 down for a used machine and the customer quit his business. Three years later he is demanding all his money back. We attempted to contact him with no results and figured he was done with the business. We since sold the equipment and he now expects us to have it ready for him. The machine today would be useless if we had held on to it for him like he now expected.


Asked on 8/30/07, 3:54 pm

1 Answer from Attorneys
Steven Vatndal Law Office of Steven J. Vatndal

Re: Down Payment

What did the various writings say concerning this order (including the "fine print" on any purchase order or invoice)? What was verbal concerning the order? What was the delivery date? I assume that the machine was not custome made since it was used.

The answer will probably be found in the Minnesota version of the UCC, but these and possibly more facts are needed first.

Less likely, but possible: further review of the facts might reveal that a three year statute of limitations applies and that that time has run.

Is there only $1,500 at issue? Given the right facts, your exposure for the $1,500 might be very low, but probably no zero. Also, if he sues (even in conciliation court with no attorneys on either side) you're still going to have expenses and distraction that results, so it's a good idea to make a serious try at settling the issue.

Please e-mail me directly with further questions at [email protected]

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Answered on 8/30/07, 4:16 pm


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