Legal Question in Civil Rights Law in New York

Small Claims Court Question

I received a $200.00 deposit from a buyer on the purchase of a car. They signed a note saying they would pay the balance of the car 3 days later. I had another buyer for the car but could not sell it to them because I already received the deposit from these people. I heard nothing from them in the 3 days following so I cashed their check. They then contacted me saying they did not want to buy the car and wanted their money back. If I did this as a landlord accepting a deposit on an apartment and they backed out, I would keep the deposit being as I could not rent it to someone else during that time as that meant to me that they were moving in. I believe the same law applies to this situation also. Please advise me of this since I am planning on taking them to small claims court for the balance of the vehicle, and they also are contemplating on taking me to court for the deposit back. Any help would be appreciated asap. Sincerely, Haws


Asked on 5/24/04, 5:22 pm

1 Answer from Attorneys
Stephen Loeb Law Office of Stephen R. Loeb

Re: Small Claims Court Question

You cannot keep both the car and the money. If they refuse to buy it from you. You can sell it to someone else and if the second sale is for less than the contract price with the original purchaser you can sue for the difference plus additional costs (advertising, upkeep) but if you are made whole on the second sale or received profit you cannot be enriched by the breach and must return the money.

Should you like to discuss this or any other legal matter, you can call my office to schedule an appointment for a consultation or in the alternative, I can be reached for on-phone low-cost legal consultation at 1-800-275-5336 x0233699.

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Answered on 5/25/04, 9:43 am


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