Ifa buyer subsequently sells a vehicle that they are still under contract to make payments on without consulting the original seller/owner, what happens?

My husband sold our motorcycle to a friend. They both signed a contract thatstated that he would the make payments. A few months ago, the guy sells the bike to someone else, without consulting my husband. He also does not have the title to the bike, as my husband still owns it. So technically, he sold something that does not belong to him? My husband does not have a contract with the other guy, but he has been making the payment to us. Does the void our original contract and what should be done?

Asked on July 15, 2010 under Bankruptcy Law, Florida


M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

What your husband's friend did was to "assign" the contract to another to fulfill his obligation thereunder.  Some contracts specifically address this issue indicating that the contract can not be assigned (simple really).  But if the contract does not speak to it then it may be quite legal.   He sold him the rights under the contract that you two had.  He did not sell him the bike per se but the right to buy the bike.  I would check with an attorney in your area as to what you can do about this.  Contracts are personal agreements as between parties and I can see how this o would be upsetting to you.  Good luck.

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