If I received a $500 deposit to hold classic car for sale to an individual but the next day he changed his mind, am I obligated to return deposit?

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If I received a $500 deposit to hold classic car for sale to an individual but the next day he changed his mind, am I obligated to return deposit?

Asked on July 2, 2012 under Business Law, New Jersey

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

When the buyer changes his mind after providing a deposit, the seller generally only has to return the deposit if either 1) the seller had stated it was a refundable deposit or otherwise offered to return it; 2) the seller has misrepresented the vehicle or transaction in some way. However, if  you never stated the deposit was refundable and you did nothing wrong, you should be entitled to keep it.


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