Question regarding buyers who back out

[rosaroca]

Hi, all!

I sold a colt about three months ago to a lady in Texas. She put down a deposit and signed a purchase contract. The contract said that she'd pay a certain amount each month, plus a small amount of money for board after the first month, and gave her until May 31 to pay him off completely, after which time he could go to her house.

She has paid nothing since the deposit, isn't answering my emails, and I've been unable to reach anyone by phone. I sent a letter a couple of weeks ago telling her to contact me immediately - no reply.

My next step will be to send a certified letter, so that I'll know if she's even at the same address.

My question is, what next? She's obviously defrauded her side of the contract, but do I need to wait until after May 31st to resell the colt? Is there anything else that I need to do, legally or morally, before giving up on her?

Any advice would be appreciated!

 

[kaykay]

i think you do have to wait until 5/31 to resell him. But after that i would sure put him back up for sale. Be sure to send the certified letter too.

 

[Happy Valley]

I agree that waiting until May 31 is the thing to do. You said you'd give her until then, so that's what I'd do. Just my opinion.

Stacye

 

[Jean_B]

Did your contract specify that X dollars had to be paid by a certain date each month, and if late, the contract was null and void and no funds would be returned to the buyer? If yes -- the contract is OVER and you are under no obligation to the irresponsible lout.

If not -- then you will need to wait until the end of May -- and then send a letter stating that the contract has been breached. And then find another MUCH more responsible buyer.

 

[Laura]

Did your contract specify that X dollars had to be paid by a certain date each month, and if late, the contract was null and void and no funds would be returned to the buyer? If yes -- the contract is OVER and you are under no obligation to the irresponsible lout.

If not -- then you will need to wait until the end of May -- and then send a letter stating that the contract has been breached. And then find another MUCH more responsible buyer.

Ditto to everything Jean said. I understand hard times and emergency situtations, but I have NO patience with anyone who defrauds or defaults and then ignores me.

 

[rosaroca]

Thanks, everyone!

In answer to a couple of questions, yes, my contract does state that she's to make a payment each month, and she didn't make one in March or April. Nor has she paid any board (I gave her the first month free). I will be sending that certified letter tomorrow, in hopes of hearing from her.

It's so odd that she defrauded on this. She had been emailing me about this colt for nearly a year before she finally put a deposit down on him. He would have been her first Miniature. I have a sinking feeling that I might be dealing with a CHILD!! I never spoke to her on the phone, so I can't know her age. She sent me a money order for the deposit, so I don't even know if she has a bank account.

My luck, she's probably fourteen, living at home, and signed the contract without her parents' consent. At least maybe the certified letter will get their attention, if this is the case.

 

[Littleum]

My luck, she's probably fourteen, living at home, and signed the contract without her parents' consent. At least maybe the certified letter will get their attention, if this is the case.

Hope not! If it's a minor, you can't make contracts at all with a minor. Unless the parents sanction it, not only will you loose the sale, you'll almost surely be obligated to return the deposit money too. :no:

 

[Lauralee]

Please PM or email me the name of the buyer! This story sounds all too familiar.....

[email protected]

 

[Jean_B]

My luck, she's probably fourteen, living at home, and signed the contract without her parents' consent. At least maybe the certified letter will get their attention, if this is the case.

OK - there's a lesson here for EVERYONE. Never, EVER write a contract to anyone based simply on emails unless you know the emailer VERY well. ALWAYS pick up the phone and call the buyer to verify:

1. That they are of legal age. No one under the age of 18 can legally enter into any sort of contract unless they have a court order that they are emancipated. Despite the fact that I talk to them on the phone, my contract still states that if under 18, a parent or guardian MUST sign the contract. If the horse is for a kid and the kid signs - I send them a new contract and do not consider the horse sold until I get a parent's signature.

2. That they know something about horses, their care, fencing requirements.

3. That they are not living on rental property which is for sale. (which will always end up with them asking if you will buy the horse back when the property is sold out from under them....duh!?! Hello?!?)

 

[SandyWI]

The fact that the person sent you a down payment and signed a contract does show serious intent to purchase. Not following up on the monthly payments is odd, since the person would know they'd loose their deposit. Perhaps there was a catastrophic accident of some sort and the person is either deceased or disabled, therefor unable to answer their emails or phone.

I would definitely send the registered letter, but it also wouldn't hurt to place a phone call to the local sheriff's or police department in her area and inquire as to whether they know if this person is still living at this address.

Two years ago we caught someone coming out of our woods with a poached turkey. We talked to him and he said he'd "always" hunted on this land. Not! We took down his license plate number and gave it to our local authorities. They found out he lived on the other side of the state, but when they called him, for weeks and weeks, at first he never answered his phone messages and then finally they were told the phone was disconnected. So, WE contacted the police in the town he lived in, and they said he was indeed still living at that address. We contacted our LOCAL police again and they got in touch with the other department, who served him a summons.

 

[Sunraye Miniatures]

I agree if this person is a minor than there isn't a whole lot you can do.

If this person isn't one than I would email this person back, and pretty much tell her straight out that by May 31st if you don't receive all the money you deserve than the deal is off and they won't get their deposit back. Don't just email, call, write, do whatever so this person can get the message. Do it now!

IMO she didn't follow the contract so by law you should keep the deposit now, but just hold off and see how this goes.

 

[KanoasDestiny]

This is a very odd situation to me. If she was in contact with you for nearly a year, then put a deposit down, and then signed a contract, it sounds to me like she was seriously interested in this colt. Perhaps she has had a really bad incident recently or as another member suggested, is deceased. It's hard to believe that after so much interest, she would just lose it and back out. Plus it is really rude that her or someone else hasn't returned your messages to let you know what is going on. I would definately contact the authorities and ask them if they know of her where abouts. This will also work to your benefit if the case goes to court.

If in fact she is a minor, I believe you would be required to return the deposit if the parents pushed the issue. I was sent an invitation for a visa card when I was 17, I entered into the agreement and the company did know I was only 17 (as I put my birthdate on the paper and didn't lie about being older). But had I not stuck to my part, the company could not do anything to me legally, as I was a minor. I doubt that parents are concerned about the money, if you have not been contacted already.

If in fact this woman did back out, or has not stuck to her part as stated and signed in the contract, it is a breached contract as of now and legally you could resale the colt. However, I would send her the warning ahead of time, and wait it out until May 31st. Then if it goes to court, you could tell the judge that you gave her certified warnings, and still waited to give her the benefit of the doubt.

Best of luck to you!

 

[BKBowen]

Hi....

Alot of your situation about what to do next would depend on the contents of your contract. You need to have a very thorough contract and cover as many bases as possible...for everyone's protection.

I have seen contracts that say no more than " I am selling you a palomino horse, a mare, on such and such date" and both parties signatures...that contract was not worth any more than the paper it was written on...ha ha. There is no way to properly identify the horse, the terms of the sale, etc.

In the event there is a payout agreement...I have in my contract a clause that states IF there is non-payment or a payment is over 30 days late with no written notification that a late payment is going to be made and approved and accepted by the seller, then BUYER is therefore forfeiting the contract, any rights to ownership to the horse, and any monies already paid on the horse immediately. Otherwise, if your payout is over a year long or something, you could very well be waiting a year to sell the horse again by trying to the right thing.

I also go over the contract with the BUYER in detail before sending it to them. I have a place on there that states they are accepting or declining a pre-purchase exam. If I let someone pay it out, they must insure it and I have all the insurance info. on there as well. You cannot cover too many details... I have the terms of payments, any boarding, any further fees (breeding or vet, etc), shipping details, all broken down on the contract. If they are to arrange and pay for shipping, it needs to be noted.

For your case, if you had a clause in there that made the point if "if you are more than 30 days late on a payment and you cannot have the courtesy to let me know the problem or situation and let us work something out, then I can consider the contract defaulted on and pursue other avenues at once." Of course, you should try your best to contact them and see what is going on...which it sounds like you have. IF you are dealing with someone under 18, then just like everyone said, if they press you, you will have to return the money already paid down on the horse. I would always talk to someone by phone anyways to see what sort of arrangements they had in mind for shipping, what was expected in the agreement or contract, etc. BEFORE I would send them the contract to sign anyways. I don't like surprises and I don't want the client to be surprised in any way either. That way when you do send them the contract, they know what to expect it to say before they even read t and sign it and hopefully you have already answered any questions they may have about it. They should feel as comfortable as possible (as well as yourself) that they are making a sound agreement.

Unfortunately, if you do not have a clause or statement on your contract about what happens when a late payment or non-payment happens, then you should probably wait until the end of May to re-sell him. Also, I have had a couple of people back out on contracts over the years and I did this...just to kind of show I was trying to do what was right....when re-selling the horse...I sold him for the DIFFERENCE of what I had priced him at originally and what had been paid on him already by the person who defaulted on the contract initially. Foe example...I sold him originally for $2000 but the purchaser only paid $500 on him. After the contract was defaulted on, I would then re-sell him for the $1500 still owed on him originally. That way it makes it obvious that I wasn't out to make a buck off of someone the first second they were late with payment. And if the initial purchaser ever does contact you in the future...you can say well I resold him but I only sold him for the amount that you didn't pay me in the first place.

I know your frustration when you do let someone make payments...and usually (I never have) charged any kinda of interest on top of it, and then the purchaser doesn't hold up there end of the deal...agh! Rcently I had someone was to pay an somewhat pricey horse out $100-$150 a month...how can you possibly do that? Then they get upset with you but I have to wonder did you really expect me to "finanace" a horse for 4 years or more???? I keep looking for where it says FORD or Chevrolet on my horses somewhere...ha ha ha ha.

Funny thing...I had a woman that PAID for a horse, and for months I could not get her to come and pick her up! Very rarely do you have that happen...ha ha. And the woman lives in the same town! We finally had to get the Sheriff involved and he had to drive over, tell her to be there at a certain time, and we took the horse over there (she takes really good care of her animals so I do not understand what her deal was..lol), Sheriff made her sign a piece of paper that said she received the horse in good health, etc. on his suggestion because she was being such a dingbat. He signed it as well as witness....

Goes to show...no matter how hard you try, you will still have those wonderful folks that just won't cooperate...just make sure your contract you have signed covers all the bases...what else can ya do???

Best of luck!

Bobbi Kay

 

[mountain_waif]

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