Legal Question in Civil Litigation in Pennsylvania

Having no writing was a BAD idea. Its going to be a case now of "he said she said" in front of the judge. There is no way to answer your question. Its going to turn on what kind of evidence you and your friend each produce.

Since there is no bill/receipt, what is it likely that your friend can say? If the friend says the agreement was that the bed would be sold for $700 and you could pay $400 down and $300 later then it will be a contest between your version and the friend's version. Were there any other witnesses? If not, it will come down to who is the best actor/actress and most believable.

The judge could find for you or the friend or figure you are both lying and split the difference.

Your story does not really make sense. The whole purpose of written receipts is to avoid these kinds of misunderstandings. And people do not make agreements and then change their mind 30 days letter. Obviously the seller is no longer a friend. Friends don't sue friends. So what really happened to cause this change of heart on the part of the ex-friend seller? The answer to that will dictate whether you are likely to prevail or not.

And your proposal generally is not sufficient. The seller cannot be forced to take back the item.

The seller will have to show that there was an agreement (albeit oral) for you to buy the bed for the agreed upon price. The seller thinks its $700. You will have to defend and say it was $400. It will be up to the court, but generally the seller is going to be the last word on the price unless you can take pictures of the bed and have it appraised by a furniture appraiser to indicate that it was worth no more than $400.

Are you really going to go to this much trouble for an extra $300? I think not. Why not see if you can offer to settle this for half. Just get any settlement agreements in writing. I would try and get this worked out before a judgment is entered if possible.

If this cannot be done, while it will be difficult for your friend to ever collect on the $300 if she wins, you do not want a judgment hanging over your head. Magistrates can work out an easy payment plan over 12 months.