Legal Question in Business Law in Pennsylvania

In the spring of last year I sold a motorcycle as a private owner to a buyer for $3900. She gave me $500 cash and a check for $500. I gave her a handwritten receipt for the $1000, saying the balance was to paid in 30days. I turned away a customer who told me he was bringing cash that day.

The check bounced, and when I called the buyer, she asked me to resub it, and it cleared. I now had $1000. Several months passed, and in the fall the buyer gave me another check for $500. It too bounced, and I decided to try and sell the bike to someone else.

Motorcycles in Pa are very seasonal, and I was unable to sell it until this spring, for $3000, $900 less than I could have sold it to both buyers last year. I also paid an extras years interest on my loan, which was well over $100.

The buyer wants her deposit back, and is threatening to sue, but I feel I incurred damages beyond her deposit when she breached our contract.

Do I have to give it back? Can I countersue if she sues?


Asked on 7/22/11, 9:45 am

2 Answers from Attorneys
Rachel Hunter

Did you have any kind of written agreement?

I would tell her that she breached the agreement by: (1) giving you a bad check, not once but twice; and (2) that she failed to pay what was owed.

Tell her that you sold the bike to someone else for less and that you are keeping the deposit to compensate you for the time and trouble of having to re-sell the bike and to cover for the loss that you suffered because she broke the agreement. Tell her that if she pursues this request that you will seek legal counsel and that you will sue her for your damages.

Send the letter to her by certified mail or UPS//Fed Ex and see what happens.

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Answered on 7/22/11, 12:13 pm
Kevin B. Murphy Franchise Foundations, APC

As a Franchise Attorney I basically agree with the other attorney answer. The person who has the money is usually in a strong position. She has to sue you and you can countersue her. If it happens at all, it will be a small claims court matter. 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.

Franchise Foundations, a Professional Corporation

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Answered on 7/22/11, 12:31 pm


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