Quote:
Originally Posted by Jmcruz87
So I have a question for everyone out there maybe someone else has experienced this. This past weekend me and my friend were looking for a Z for him. We found one at a dealership in Dallas that he wanted and began negotiating a price. Two days later they call him back making the offer he wanted. He agreed to buy the car and put $1000 down to hold it till he could drive up there (he lives about 5 hours away). The next morning they call saying they changed their minds and that they could not sell the car for the agreed price. Although the verbal agreement may not stand up wouldn't the fact that he put a $1000 on it mean they could not back out of their offer. Has anyone experienced this or know if it is legal for them to back out like that after a down payment was made?
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Depends on the law in your state. But in many states, putting the money down removes the barrier of the absence of a written contract. The deposit constitutes "part performance" and removes your claim from being barred by the Statute of Frauds. You could sue if the proposed deal is good enough to justify the time, effort and expense involved.