Legal Question in Consumer Law in Oregon

selling a motorhome on a verbal agreement

Person wants to buy our Motorhome, gives a down payment says he wants a few thing fixed. States he will pay the balance in two weeks if the things are fixed. Within 10 days we have the few things fixed and make contact with subject. About a month later they make another down payment, about 30 more days later makes another payment. and yet another 30 days goes by make another payment, ask if we would write up a ''contract'' and if they could take it next weekend. I said I would check with my husband get back to me in a few days, about 3 weeks pass and he calls and ask about a ''contract'' I told him that my husband said the motor home would stay on the property until they finished paying for it, and I told him that the agreement was that he would pay it off in two weeks and that was 3 months ago. He hung up on me and stated '' my lawyer will contact you and we will be sueing you. What are my rights do I keep his down payments and sell the motor home, do I have to pay him back, the verbal agreement was for him to pay for it in full in two weeks after the repairs. I have not heard from him in almost a month. What do I do?


Asked on 9/20/05, 10:46 pm

1 Answer from Attorneys
Andrew Svitek Svitek Law Group, LLC

Re: selling a motorhome on a verbal agreement

Obviously not having a written contract poses problems because in order to resolve this a court would have to ascertain the objective intent of the parties (not subjective) at the time the transaction was entered into.

This means what would reasonable parties in this transaction believe that the contract was. It is irrelevant if one or both of the parties believed something else - the court will look at this through the eyes of hypothetical parties.

I need many more facts than you've provided naturally. What was the total price of the home? What amounts were the payments? When is he promising to pay the balance? How do you know the buyer? Did you advertise it? What was said initially and subsequently and do you have witnesses?

However, one issue is whether "time was of the essence" in this contract? Perhaps because you still needed to fix the motorhome the buyer could infer that he could perform his end of the bargain (pay) over a period of time.

He may also have created an "option contract" meaning that by putting down a deposit he was allowing himself the opportunity to purchase at a later date.

Unfortunately, from what you've told me this transaction could be characterized in a few different ways and not all favorable to you.

Because you don't have a written contract stating that the deposit was nonrefundable and because it is doubtful whether you could rely on the doctrine of detrimental reliance (fixing the motor home is to your benefit as well) it would be best not to keep the deposit.

I don't see the justification for keeping it - no clear written contract and no strong facts on how you may have been harmed by his slow performance of his end of the bargain.

Expect him to say that that was the bargain all along - motor homes are frequently bought on an installment basis.

I am just cautioning you - but you really should see an attorney or try to resolve this amicably.

If you consult with an attorney he or she will consider all the facts and may be see facts to support various legal theories of contract that might help you.

DISCLAIMER: THIS IS GENERAL INFORMATION NOT LEGAL ADVICE - CONSULT AN ATTORNEY IF YOU NEED TO DECIDE HOW TO PROCEED.

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Answered on 9/21/05, 2:54 pm


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