Legal Question in Business Law in Pennsylvania

Not necessarily. Did you take the car off the market and have to put it back on the market now that she has decided she does not want it? Have you incurred any excess costs? Have you been able to sell the car now, albeit for less than the first deal?

If you sell the car for more than you were going to sell the car to her, then I would consider refunding her deposit, minus any extra costs you incurred to re-advertise the car for sale.

If you sell it for less, then tell her that she broke the contract (there is no cooling off period for cars - she bought it so technically its hers now) and that you sold the car for less and are keeping the $100 as lost profits/extra costs incurred because of her breach. Is she really going to sue for $100? If so, bring it on! Make sure that you protect yourself through documentation and you countersue against her for breach of the contract. That way, any damages will offset and she will not recover anything.

Just to make her go away, you could try offering her something less than $100 just to compensate you for your time and trouble. If you get her to agree to accept less, then please draw up an agreement indicating that you are ending your contract to sell your car to her and that you are voluntarily refunding whatever sum you agree on. Note than nobody admits to any fault and both of you sign it. Make 2 originals and sign both - give her one and keep one. You do not need to get it notarized.

You can get sample release forms for free at www.ilrg.com. Just edit it a little to customize it for your situation.

As a Franchise Attorney I can only say the answer depends on both legal and moral principles. Legally speaking, what does your deposit receipt say? Was there a written or oral understanding that the deposit was nonrefundable? Normally deposits are made to hold something, meaning you potentially lose the ability to sell to another party as the item is "taken off the market" for the benefit of the person making a deposit. Consider this information, and your conscience, in making a refund or no refund decision. Consult with a good business or franchise attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

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