Legal Question in Consumer Law in Pennsylvania

Re: Car sale

You asked about the sale of a vehicle.

Here the answer lies not only in man's law, but also in the moral law. The sale of property (real or personal) generally occurs where there is a meeting of the minds and some action towards performance, such as a contract or a deposit, which formalize a contract. A deposit is often given to provide a guarantee to the seller. Essentially, the purchaser is saying "Here's some money as a deposit, if I fail to complete the transaction then I forfeit the deposit." Of course there are caveats, such as if a person is regularly engaged in the sale of the property sold (e.g. A car salesmen, even selling a personal vehicle.).

Here, it could be argued that the purchaser has defaulted. But since there was no deadline for the completion of the transaction the purchaser still has time to complete the transaction.

Based on the information provided, the deposit is forfeit to the seller. But the matter doesn't end there. The seller should do all he can to locate the purchaser (get an attorney to help). If the purchaser has completely defaulted and can't be found the cars can be reclaimed and sold, again. If the cars are sold for more than the agreed purchase price then the seller should, but is not required to return the deposit less any carrying costs and costs of selling. If the cars are sold for less than the agreed price, again, the seller should deduct the deficiency on the sale (difference between agreed price and the final sale), the carrying costs, and costs of selling from the deposit. The remainder of the deposit should be returned, but the law doesn't require that.

Regards,

Roger

Re: Car sale

In my opinion you have a contract for the sale of the two cars. Unless you specifically agreed that he would forfeit the down payment then the money does not belong to you. You should put it into an escrow or separate account. If he does not close within a reasonable time (60 days?) you can sell the cars to someone else. He might be liable for your losses on the deal; like a lower sales price and the interest. It sounds like it's not practical to attempt to force him to finish out the deal; but you have that option too if you make contact.