Full question:
I am selling a motorcycle for $3,850.00. The buyer leaves $200.00 to hold the bike for one week. A written receipt was drawn up noting exchange of monies. The verbal agreement was for bike to be picked up on said date (not documented). The buyer calls & leaves message stating he cannot pick up bike till following Friday (one week). I called the buyer back and stated that I needed the bike picked up on originally specified date, but the buyer was unable to accomodate. Nothing more was said. I ended up selling the motorcycle to different buyer. I contacted the original buyer for address in which to return his $200.00 deposit. The original buyer claims this was a Breach of Contract. My arguement is that there was verbal Breach at his end as well when he failed to pick up the motorcycle on the agreed upon date. Who does the law favor in this scenario and what might be gained?
- Category: Contracts
- Subcategory: Breach of Contract
- Date:
- State: National
Answer:
This situation involves determining whether a breach of contract occurred. The court will interpret the facts and circumstances to decide if a breach took place. A written contract usually outlines how acceptance should occur. In some cases, the seller's obligation to deliver the item doesn't start until full payment is made.
If a contract was formed and all payments were made, the buyer's failure to pick up the motorcycle may not be considered a breach that voids the contract. A material breach, which significantly undermines the contract's value, is typically required to void it. If the buyer did not perform their duty as specified, this could be seen as a breach.
In contract law, damages are usually limited to out-of-pocket expenses to restore the non-breaching party to their original position. For instance, the buyer may seek a return of their deposit, but they generally cannot force the seller to deliver the motorcycle unless it is unique and irreplaceable.
Anticipatory breach occurs when one party indicates they will not fulfill their contractual obligations. This can allow the other party to treat the breach as immediate and seek damages without waiting for the actual breach to occur.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.