Morgantown, WV asked in Business Law and Consumer Law for West Virginia

Q: Do I have to give money back when a person pays a deposit down on a car to hold? He paid cash.

It's been 3 months since the deposit but he was supposed give us money in 2 weeks after that and didn't.

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1 Lawyer Answer
James L. Arrasmith
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  • Consumer Law Lawyer
  • Sacramento, CA

A: When a person places a deposit on a car, the terms of that deposit should be outlined in a written agreement, including the conditions under which the deposit would be refunded or kept in the event of a cancellation. If there was an agreement that the remainder of the purchase price would be paid within two weeks and the buyer failed to do so, you may be entitled to keep the deposit as liquidated damages, assuming that was the agreed consequence.

However, this depends on the specific terms of the deposit agreement. If there was no written agreement or if the terms are unclear, the default rules of your jurisdiction regarding deposits and contracts would apply. You should review the circumstances of the agreement and consider consulting with an attorney to understand your rights and obligations in this situation. It's important to handle such matters carefully to avoid potential legal issues.

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