Contract Law - advice required

[Stucey]

I studied contract law but it was a while ago and I can't really remember it too well. Anyway, I have a question to anyone who might know a bit about it:

One of my friends has been looking at cars and finally decided on one they would like on the weekend. They went to the place (private sale) and gave them the deposit and wrote up a contract saying that they would sell the car at XXX price and that they had received XXX amount for a deposit, and they all signed the contract

However, during the week, the guy has rung up and said that he is not selling his car anymore because he needs it blah blah blah.....(insert big excuse here).....

Now, technically he has signed the contract and is bound by law to sell the car to my friend right?

Furthermore, the car was advertised in the Trading Post again today, and I rang them up pretending to enquire about purchasing it, only to be told that it had been sold.

Clearly they have received a better offer and then decided to go for that instead. What are the options my friend can take here? Should they pursue it further if they really want the car? Or is there nothing they can do?


Thanks in advance...

 

[Docker_Brat]

I would think that it is a binding contract if a deposit has been paid. Otherwise it is an invitation to treat.

Sorry, been a few years since I did contract law too.

 

[skilts]

Best advice I ever had from a lawyer was: If you can possibly avoid it, never go to court.

Tell your friend to get on with his life. There are some armpits out there, and a lot of other cars.

 

[BluesBabe666]

Will your friend get his deposit back?

 

[Docker_Brat]

The vendor would probably have to hand over the car as the law sates, but it really wouldn't be worth it. I agree with skilts, grab the deposit back and tell the prick to shove his car, another will come along.

 

[Stucey]

Good point Skilts.....and yes Bluesbabe, there is no problem with getting the deposit back.

I actually remember some stuff now and Docker, I think Invitation to Treat is when you see something advertised, so initially there was an invitation to treat, but once they formed a contract it would then become legally binding, as in offer and acceptance.

If you see something advertised in a shop window or store, I think that is considered an invitation to treat? Like u, I am pretty rusty on it all, although I only did it 2 or so years ago...

 

[BluesBabe666]

Although its a good idea to just get back your deposit and run, i'd have to ask the question of this guy if i was your friend. I mean what an idiot, if he had been honest with your friend, maybe your friend would have bettered the other offer if in fact there was another offer? What an arseh*le, as much as you dont want to end up in court, it ****s me no end when pricks get away with this sort of beheaviour.

 

[Docker_Brat]

Originally posted by Stucey
Good point Skilts.....and yes Bluesbabe, there is no problem with getting the deposit back.

I actually remember some stuff now and Docker, I think Invitation to Treat is when you see something advertised, so initially there was an invitation to treat, but once they formed a contract it would then become legally binding, as in offer and acceptance.

If you see something advertised in a shop window or store, I think that is considered an invitation to treat? Like u, I am pretty rusty on it all, although I only did it 2 or so years ago...

Yeps, that's correct.

The seller has to sell the car to your mate as far as the law is concerned, but unless your mate has suffered a financial loss (say, if the deposit isn't handed back) then it really isn't worth pursuing.

 

[Stucey]

Originally posted by BluesBabe666
Although its a good idea to just get back your deposit and run, i'd have to ask the question of this guy if i was your friend. I mean what an idiot, if he had been honest with your friend, maybe your friend would have bettered the other offer if in fact there was another offer? What an arseh*le, as much as you dont want to end up in court, it ****s me no end when pricks get away with this sort of beheaviour.

Hmm, interesting. Although legally he had already sold the car, so by taking other offers and asking my friend to up their price is not something you are allowed to do, so I guess that is why they didn't do it and tried to squirm their way out some other way.

End result, deposit will be returned, and they will just look for another car. Not worth the hassles I guess.

 

[sussudio]

just did a business law subject last semester. clear contract for mine. your friend offered a price, the vendor accepted, and the fact of the deposit and the terms in writing is just icing on the cake. if your friend decides to pursue it, the vendor would be in clear breach of contract. they are not allowed to field offers from others then get your friend to up the ante. the price to be paid is the price that was offered, then accepted.

but, as mentioned, litigation is messy and costly. unless the car was particularly desirable or the deposit was substantial, I would walk away. my legal advice: maybe give the guy a few crank calls or leave a pile of **** on his doorstep

 

[Stucey]

Ah, the crank calls are coming thick and fast!

"Just remember mate, we know where you live"....

 

[Dr Zaius]

Originally posted by Docker_Brat

Yeps, that's correct.

The seller has to sell the car to your mate as far as the law is concerned, but unless your mate has suffered a financial loss (say, if the deposit isn't handed back) then it really isn't worth pursuing.

I'm not sure the financial loss is relevant here. Thats more for negligence. A contract is enforceable regardless of the consequences (unless you are in NSW and the contract is deemed "unfair"). You can, if the contract is valid, seek specific performance where the contract does not involve personal services. In this case obviously it doesnt.

All this is moot as others have pointed out, it is hardly worth pursuing unless you are loaded and want to prove a point.

 

[kittenswan1]

The vendor may not be allowed to field offers after he signed the contract (which he appears to have done) but excuse me if I'm way off beam here -

Surely either party reserves the right to withdraw from a contractual agreemnet before that contract has been completed ?

Things happen, unforseen circumstances, acts of nature (Force Majure) indeed all sorts of events and factors (yes, including just plain old change of mind) can interfere during the duration of a contract to make either party withdraw from that contract.

As long as you got your deposit back, I'm really not so sure you have much of a case.

Contracts can only be SO binding - they can't be so binding as to inhibit the natural justice accorded to either party.

Just playing a devils advocate here ...

 

[35eye]

Originally posted by Stucey
Ah, the crank calls are coming thick and fast!

"Just remember mate, we know where you live"....

Go on, post his phone number and we'll all ring him about the car day & night.