Direct sales disagreement, experts give advice thanks

[Aerosmith]

basically i will summarise as easily as possible.

we agree to deal a vehicle at price $88k and i am the seller. the deposit was $1k by check and we sign an agreement with this specific clause:

the deal will only go through if they secured insurance for the vehicle. otherwise, the deposit must be returned.

now they want to back off from the deal and they ask me not to bank in the check. the reason they gave was that the insurance they were quoted were too high.

i have not told them that i intend to keep the deposit. they will obviously state that they have the right to get back the deposit because they did not secure the insurance.

but i feel that that term did not state clearly. it was quite obvious that when someone say cannot secure insurance, it it because nobody want to insure. now the problem is many people want to insure, just that they feel too expensive. i rejected an offer at $87k because they gave me this deposit. now i ask the second offer guy, he say he bought another car already.

i feel very lugi le. what do you guys think? should i bank in the check tmr? of course, my guess is that they should have already canceled the check. but do i have a case if i go CASE?

[Mcscot]

The clause is very clear "if they secured insurance" ... it doesn;t matter if they don't want to pay for insurance etc etc. They can tell you that they failed to secure insurance and you'll be none the wiser! BTW I think CASE is only for business to consumer transactions and I doubt they will can help with your situation.

[Hotamp]

 

basically i will summarise as easily as possible.

we agree to deal a vehicle at price $88k and i am the seller. the deposit was $1k by check and we sign an agreement with this specific clause:

the deal will only go through if they secured insurance for the vehicle. otherwise, the deposit must be returned.

now they want to back off from the deal and they ask me not to bank in the check. the reason they gave was that the insurance they were quoted were too high.

i have not told them that i intend to keep the deposit. they will obviously state that they have the right to get back the deposit because they did not secure the insurance.

but i feel that that term did not state clearly. it was quite obvious that when someone say cannot secure insurance, it it because nobody want to insure. now the problem is many people want to insure, just that they feel too expensive. i rejected an offer at $87k because they gave me this deposit. now i ask the second offer guy, he say he bought another car already.

i feel very lugi le. what do you guys think? should i bank in the check tmr? of course, my guess is that they should have already canceled the check. but do i have a case if i go CASE?

 

guess live and let go....you have a lost opportunity cost...not a total lost.. you hire lawyer go case etc...things drag on more hassle...a lesson learnt, maybe next offer can get better?

[The_Bear]

I am no expert in legal matters but as an advice in life, don't take that 1k. Give them back their money, you will feel better 3.6 years down the road.

[Thomascivic86]

Next time, take cash deposit.

[Aerosmith]

thanks guys. learnt a lot from this experience. next time is cash deposit and agreement must not have such clauses with loopholes. i will just return them the check, hope i get good luck from CNY.

Edited January 27, 2014 by Aerosmith

[Kangadrool]

Lousy clause.

 

Should simply say, deposit paid is not refundable.

 

 

[Vhtfhwlego]

thanks guys. learnt a lot from this experience. next time is cash deposit and agreement must not have such clauses with loopholes. i will just return them the check, hope i get good luck from CNY.

Years ago my friend bought a 924, same terms, deposit $2k.

Then after checking, insurance cost $5k, 3rd party, 20% NCB, for a 20years old car.

He requested seller to refund deposit but of course, seller refer to terms and swallowed the $2k.

[Watwheels]

You can bluff them say you already deposited the cheque but actually you don't do that. Tell them go cancel it see can make it or not. Cancellation will incur admin charges for them. Let them panick and lose some money lor. Haha....

[Kangadrool]

What's wrong with banking in the cheque?

 

It's a deposit.

 

Just bank it in and there's nothing to loose.

 

If cheque bounce, poh mata.

Edited January 27, 2014 by Kangadrool

[Aerosmith]

What's wrong with banking in the cheque?

 

It's a deposit.

 

Just bank it in and there's nothing to loose.

 

If cheque bounce, poh mata.

 

the issue is that they have a clause in the agreement that is grey area.

[Jman888]

weak case, just take it as lesson learnt.

[Kangadrool]

 

the issue is that they have a clause in the agreement that is grey area.

clause never say cannot bank in deposit cheque what.

 

A deposit should be in cash, in lieu of cash, a cheque is used, for you to bank in safely and conveniently. This is actually your $$$ already.

 

Even if the clause is triggered, can always refund them with cash or another cheque drawn out by you.

[Vhtfhwlego]

Tell u my story la.

31/12 - met a buyer thru the dealer (consignment). Agreed on the price, buyer paid dealer (A) cash cheque of $2k and dealer paid me $500.

31/12 to 02/01 - me went shopping for car, found 1, paid $1k to another dealer (B).

 

02/01 - buyer's cash cheque bounced. Dealer (A) did not inform me.

 

06/01 - I am wondering why the loan for the buyer yet to approve and decided to ask the dealer (A). They say need time and still didn't mention to me cash cheque bounce.

 

07/01 to 08/01 - decided to drop by (A) to have a chat, then I know of that they did not receive buyer's income proof. Contacted buyer directly and I became the assistant for (A), providing docs to them for loan application. Only during then I know if cheque issues. (B) also check with me my status.

 

10/01 to 13/01 - (A) don't want to apply loan for buyer, made me chase after him for deposit etc otherwise they will claim back the deposit paid to me. (B) sold my purchased car and went I read their T&C, they have the right to do so. Damn TL during then

 

Knowing that in Singapore, no one can help receiver with bounce cheques and I decided to take action of my own with the buyer.

 

15/01 - after days of social media, buyer compensate me $750 for my deposit paid to (B). Told me to wait after CNY whether the sale will finalize or we both walk off.

 

At this point of time, made a "profit" of $250 but yet to return deposit to (A). If that I do, I will make a lost of $250. Reasons not to return, (A) had not assist with the client at all, and at some point giving empty promises (such as "you can keep the $500, I will make sure I whack the buyer with legal. Then 1 day later, I hope that you return me 50% so I wouldn't whack you as well).

[Aerosmith]

Tell u my story la.

31/12 - met a buyer thru the dealer (consignment). Agreed on the price, buyer paid dealer (A) cash cheque of $2k and dealer paid me $500.

31/12 to 02/01 - me went shopping for car, found 1, paid $1k to another dealer (B).

 

02/01 - buyer's cash cheque bounced. Dealer (A) did not inform me.

 

06/01 - I am wondering why the loan for the buyer yet to approve and decided to ask the dealer (A). They say need time and still didn't mention to me cash cheque bounce.

 

07/01 to 08/01 - decided to drop by (A) to have a chat, then I know of that they did not receive buyer's income proof. Contacted buyer directly and I became the assistant for (A), providing docs to them for loan application. Only during then I know if cheque issues. (B) also check with me my status.

 

10/01 to 13/01 - (A) don't want to apply loan for buyer, made me chase after him for deposit etc otherwise they will claim back the deposit paid to me. (B) sold my purchased car and went I read their T&C, they have the right to do so. Damn TL during then

 

Knowing that in Singapore, no one can help receiver with bounce cheques and I decided to take action of my own with the buyer.

 

15/01 - after days of social media, buyer compensate me $750 for my deposit paid to (B). Told me to wait after CNY whether the sale will finalize or we both walk off.

 

At this point of time, made a "profit" of $250 but yet to return deposit to (A). If that I do, I will make a lost of $250. Reasons not to return, (A) had not assist with the client at all, and at some point giving empty promises (such as "you can keep the $500, I will make sure I whack the buyer with legal. Then 1 day later, I hope that you return me 50% so I wouldn't whack you as well).

 

these are the woes of direct sales and the ugly world of dealers.

luckily, the recent loan curbs are driving them out of business. i heard in a news report turf city lost 20 dealers since the loan curbs.