Legal Question in Business Law in Arizona

We agreed to sell a 1 year old car to a friend who was going thorugh a divorce. We created a very basic contract with three basic requirements. We included the sale amount, duration of the loan, payment date, insurance requirements etc...

To date the car payments have never been on time. The insurance requirements we stated in the contract are not being met, and the buyer has received 3 photo radar tickets (with her picture driving the vehicle) in her state that have been sent to me because she failed to register the car for almost 4 months.

The car is at risk for being impounded due to her failure to pay her tickets, and we are at risk for a huge loss if the car is stolen, totalled etc...

What are our recourse actions?

The contract was signed in California. The car was picked up in California. The car and the buyer are in Arizona.

The buyer has since moved from the address we have for her and the car, and she fails to provide us with a valid residential address and only a PO BOX.

Any suggestions?

Asked on 6/01/10, 5:38 pm

2 Answers from Attorneys

Kevin B. Murphy Franchise Foundations, APC

Any attorney will tell you, friends and contracts with friends, don't mix. And never try and be the bank in a transaction. Let the buyer get the necessary funding on their own. If they can't , deal with someone else. At this point, you will need to get an attorney involved to try and sue your friend. That's going to cost a lot of money, and will come out of your pocket - attorneys are not cheap. And, unless your contract has an attorneys clause, you won't get this money back. Consult with an attorney in your area for specific advice.

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

Franchise Attorney

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

Franchise Attorney

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Answered on 6/02/10, 7:05 am
Lance Davidson Lance S. Davidson, P.C.

Sorry to hear about your troubles, but you should consult with an attorney to assure your interests are properly protected. Be mindful that if this person is involved in a personal injury collision while driving the vehicle, you could be named as defendants and be exposed to substantial personal liability.

Lance Davidson, or 480-860-9390.

Disclaimer: This answer does not create an attorney-client relationship and is for informational purposes only. It is not, nor is it intended to be, legal advice and you should not rely upon it as more specificity in a consultation may reveal facts or other information which could change the result. You should consult an attorney for legal advice addressed to your individual situation.

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Answered on 6/02/10, 10:51 am

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