If someone gives me a deposit on a car and signs a contract but then backs out, doI have to refund the money?

Get Legal Help Today

 Secured with SHA-256 Encryption

If someone gives me a deposit on a car and signs a contract but then backs out, doI have to refund the money?

Asked on January 5, 2012 under Business Law, Massachusetts

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Normally, a deposit given to hold an item for sale--such as a deposit on a car--is not refundable when it is the buyer who backs out of the sale or otherwise breaches the contract of sale. In those cases, the seller gets to keep the deposit as damages for the breach.

Deposits are returned when (1) it was the seller who backed out; (2) the sale became impossible due to the fault of neither party (for example, a tree fell on and wrecked the car); or (3) the agreement of sale itself said the deposit was refundable under certain circumstances, and those circumstances occured.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption