What damages is a buyer responsible for if they defaultdue to non-paymentbut the property is returned to the seller?

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What damages is a buyer responsible for if they defaultdue to non-paymentbut the property is returned to the seller?

I AM STOPPING PAYMENT ON AN EGYPTIAN ARABIAN HORSE. THE ORIGINAL PRICE WAS $50,000. I HAVE PAID $36,000TO THE OWNER AT 8% INTEREST. THE CONTRACT STATES THAT THE OWNER CAN REPOSSESS THE HORSE UPON NON-PAYMENT. NOW I AM TOLD THAT THE OWNER WILL SUE ME IF I DON’T CONTINUE TO PAY. I AM WILLING TO GIVE THE HORSE BACK AND TAKE MY LOSSES, BUT CAN THEY SUE ME? WHAT WOULD THEY SUE ME FOR IF THEY GET THE HORSE BACK? THEY CAN THEN SELL IT AGAIN AND MAKE MORE THAN I WOULD OWE THEM.

Asked on December 14, 2010 under Business Law, Georgia

Answers:

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

Answered 10 years ago | Contributor

The theory that I think that you are referring to inadvertently is known as "unjust enrichment," meaning that the seller gets all the benefits from the contract - the money and the horse and the right to sue - while the buyer (you) gets nothing but the short end of the stick.  I would suggest that you take your contract to an attorney in your area and take your contract with you.  It sounds as if it may be one sided and that is not permitted under the law.  And you are correct:  unjust enrichment is not permitted under the law so go get yourself some help and some leverage on your side.  Good luck.


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