In contract law, when a buyer breaches a contract by refusing to complete payment after taking possession of goods, the seller may be entitled to retain any payments made and potentially seek additional damages, even if the goods have defects, provided the contract explicitly states 'as is' with no warranties.
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RV Owner Sues Buyer After A Breach Of ContractAdded:
You are suing the defendant Nicholas Lamb for $4,566, the remaining balance of an RV you say you sold to him that he didn't pay and other related fees. And Mr. Lamb, you are countersuing for $3,500, the amount you paid for the deposit for the RV you were purchasing from the plaintiff.
>> That's correct.
>> Okay, and you guys entered into a written contract, right?
>> Yes.
>> May I see a copy of that?
>> Yes, Mr. Lamb provided this contract himself.
>> Okay, so you drafted this document.
>> yeah.
>> Okay, so you entered into this contract and tell me about the terms of the agreement.
>> Uh the terms of the agreement are pretty clear. Uh it it describes the vehicle very clearly. There's no question about that. It um describes the terms of payment and it also describes that the vehicle sold as is. Seller makes no warranties about the condition of the vehicle.
>> Okay, so the contract that the terms of the contract there would be initial deposit of $1,000 upon signing of the agreement and then the remaining $5,000 would be paid upon receipt and transfer of the title, right?
>> Correct.
>> Okay, so while you were waiting for the title, he paid another $2,500. So he paid $1,000, another $2,500.
The total purchase price you have listed on the contract was $6,000 and he actually took the RV, right?
>> Yes, he took possession of the RV and he took both copies of the keys at this >> Okay, he's paid you $3,500 and he has possession of the RV. Now you're just waiting for the other $2,500 once you get the title in your hands. Did you get the title?
>> I did get the title.
>> Okay, why aren't you paying him the remaining $2,500?
>> The um when I took the vehicle home, um I noticed some extra things that were different about the vehicle than we'd originally discussed, like the back lights didn't work and the dashboard lights didn't work and things like that and this >> But your contract said the vehicle is sold as is.
>> No, no, this is just an avenue towards a different uh towards a little bit more.
Um >> I'm just going to say one statement. I think you probably should have checked if the lights were working before you bought the thing. But that's just me.
>> So because of this I said like hey this is the thing and he's like it's probably just a fuse you need to pay me the rest of the money. It was kind of the way the dialogue started going. Previously the dialogue had been really, you know, warm and comfortable and so I got really uncomfortable with the way that things started going and so I researched the legality of the contract itself. There's a bunch of things that were wrong that sort of got me worried about the the >> You already signed the contract, sir.
You drafted this contract yourself.
>> at this contract no the like conditions like the legal the name on the contract is Michael Guy which is not Michael Lewis' legal name. Um he's >> And?
>> And?
>> He's the person There's no dispute. He's the person you entered into the contract with. This isn't a who done it.
>> Yeah.
>> You entered into a contract with him.
>> Right.
>> Okay.
>> Okay, fair enough.
>> Hello.
>> [clears throat] >> And um the the plaintiff is not the owner or titled owner of the vehicle.
>> And you knew that because it says in the contract once he gets the title, the title will be transferred to you and you'd pay $2,500 next.
>> But it's not owned by him.
Right?
>> He's getting the title. That's a contingency agreement. Once he gets the title, he's going to transfer it to you.
That's what you agreed to.
>> Yeah, there's no bill of sale between the original owner and him and all these things but the DMV requires >> There is a bill of sale.
>> What is the reason because you haven't given me one yet, the legitimate reason as to why you aren't paying him the remainder $2,500?
>> I felt uncomfortable with the legality of the sale and that I would have be buying a vehicle that wasn't rightfully mine.
>> Okay, dude. Listen, I don't want to beat someone up while they're already down, but you're an idiot. Clearly this guy is regretting buying this RV and he's trying to back out of it. Oh, you were uncomfortable? Sorry, dude. You should have looked at the contract before you signed it.
>> So I'm I'm sorry if it made you uncomfortable in the end, but it's it's you drafted the contract and you signed it and it is as is. I mean is that what basically this boiled down to? There were problems with the RV and he he expressed those problems to you.
>> Well, he did express those problems. I mean my sense actually was that Mr. Lamb was concerned about other things that he wasn't mentioning. Like I know that that parking the RV in San Francisco was probably an issue for him that he hadn't thought about it ahead of time. He mentions later afterwards in an email that he hadn't thought things through clearly before and that he had made mistakes. He says this in the email.
>> Okay, well, that's too bad.
>> You live in San Francisco and you're trying to buy an RV?
Bro, now I thought that you were stupid beforehand, but this is completely idiotic. I mean, good luck trying to find a parking space there. Although to his credit, a lot of people can't afford living in San Francisco, so at least he has a house. He just won't be able to stop driving around.
>> I mean, this is one of those things.
It's too bad that >> a contract that's not legal, then >> This is a I'm I'm telling you, sir. Do you want to debate the law with me?
>> No.
>> Okay, because I'm telling you this is a legal and enforceable contract that you drafted and that the both of you entered into. And it says the vehicle is sold as is. If you're buying a vehicle as is, that means buyer beware.
You take it or you leave it. If there's an issue with it, did you take it to a mechanic before you signed the contract and gave him $3,500? Well, that's on you.
>> I'm I'm but my concern is that it's not a legal sale through the DMV.
>> And I'm telling you it is a legal sale.
>> Okay.
>> He He has the title. All it takes to buy a used car, valid title, he transfers ownership to you, you pay him the money.
There we go.
>> Even if the title's from someone else, it's not him?
>> Sir.
>> Bro, listen to the words that are coming out of her mouth.
I mean, I knew you were dumb, but are you deaf, too? She said it over and over and over again that it's a legal contract and that it's a legal sale. What do they have in the water there in San Francisco? Because it ain't it.
>> He got a valid title. Were you able to get the title to the vehicle?
>> Yes, I have it right here.
>> Okay. There's no issue with the title.
Who has the RV now?
>> I have the RV.
>> How did you get the RV back?
>> After this of contract emerged and I realized that that Mr. Lamb was going back on his intent to follow through with the purchase of the vehicle, and after I had made several attempts in email to try to come to some terms of agreement, um he was he seemed to be completely unwilling.
And so then I got legal counsel and I had a letter sent to Mr. Lamb um notifying him that I still needed the the full payment and then if he didn't provide that, I would take further action. I think sometime around the time he received that letter, he then sent me a FedEx package with the keys to the vehicle in it and instructions on how to get the vehicle.
>> What do you mean by instructions?
>> Well, there was a there was a picture of the vehicle of of of its location in San Francisco, which is an hour away from where I live. He wrote a letter declaring that he had no responsibility for the vehicle whatsoever. Um he was giving me the keys back and telling me that it was in a 72-hour limited parking zone and that I needed to come pick it up.
He's basically suggesting that.
>> So you just wanted to send me on a scavenger hunt to get the RV?
>> No, this is I talked to the to the San Francisco Police Department. I got legal counsel and >> I don't know who you were talking to.
They were giving you wrong information.
>> Bro, what? Listen, you cannot.
That was kind of a sexy uh spin there.
Oh, yeah. Anyway, you cannot tell me that you signed the paperwork, you put down the deposit, you took the car, and now just because you're a little uncomfortable and you're kind of an idiot, you ditch the car like it was connected to a crime and you made him GO GET IT? HELL NO.
>> You have a contract that you have entered into contingent upon the seller getting the title of the RV. Once he gets the title of the RV, the terms are set. This is very clear. This is one of the clearest contracts I've had in my court in a long time.
And so for you to force him to take the RV back when he's not willing to go back, You're having buyer's remorse for whatever reason. Not having a grown-up man-to-man conversation with him, but FedExing him the keys and parking the RV in a random location and just saying, "I'm washing my hands of this. I want my money back." That's not how it works.
>> It wasn't my the vehicle wasn't mine.
>> Let's see the Let's see the picture.
What What picture did he send you?
>> Uh that's the picture he sent me, yeah.
>> So, it's just parked on a random street?
>> Yep.
>> Okay. And And your countersuit is about what?
>> It's my deposit that I paid.
>> The $3,500 that you paid? Okay, you breached the contract. You don't get that back.
You breached the contract. And it's unfortunate because you gave the RV back. You have the RV back, right?
>> the RV.
>> Okay. And you have $3,500 that he paid you that you get to keep because you breached the contract. That's your loss.
>> [laughter] >> Yeah.
>> Okay. What What do you want from me?
>> I would like the additional $2,500 that he he agreed to pay on that that terms of the contract. And additional fees and costs for damages and and legal items.
>> Okay. If he does that, if you want him to pay you $2,500 more, then you have to give the RV back to him. You have $3,500 as a result of this contract of sale that you get to keep. And you have an RV. You were selling it for $6,000, right? So, now you get to sell that RV >> Right.
>> for another $6,000. You keep his $3,500.
You're on top. Like you come out on top in this situation because he breached the contract.
>> I mean, Judge, you can lead a horse to water, but you can't force it to drink.
For some reason, it feels like the types of people that make it onto these court shows are not the brightest of the bunch. It's like, "Dude, take the money and run."
>> I'm not awarding you an an additional $2,500 for the cost of the RV when you have it back, sir.
>> However, your your honor, um I had this idea, too. When I When I received the RV back, I listed it on Craigslist again, selling it for the original price. The The of this contract happened 18 days after the original signing of the contract. The um which was at the beginning of the summer, the season for purchasing RVs had changed and I've had no one interested in buying it for that original price.
>> But sir, you have you have $3,500 as a result of his breach and you also have the RV. Sell it again for $6,000, you make $9,500 instead of $6,000. Case is dismissed.
>> This is a pretty cut and dry case. I mean, I think the judge didn't have to help him that much. I mean, good for her. If you wanted to lose money at that point, I probably would have just let him. I mean, what do you guys think about this? Do you think that the defendant is in the wrong for breaching the contract or do you think he had an actual right to be uncomfortable with the contract? What do you guys think about the judgment? Do you think it was too much, too little, or just right? I would love to know your thoughts. Let me know.
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>> Hell no, NO. ED reacts. We all do the Virgo anxiety dance together.
Watching all the judges clips with him makes so much sense. Hell no, what was that?
>> [laughter]
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