Q: Is this a failure of consideration for an auction motorcycle?
I purchased a collector motorcycle through an online auction where the auctioneer, based in California, provided documentation stating it was an original model, according to factory records. Despite the Terms and Conditions stating that any legal action must occur in California, I argue that because the auctioneer breached our contract by providing incorrect information and failing to maintain the required $20,000 surety bond, I can sue in my home state, New Mexico. The motorcycle delivered has the correct engine number but a different frame number, making it non-original, and about $19,000 less valuable. I've provided evidence, including photos, to the seller, who refuses to issue a refund. Can this situation be considered a failure of consideration?
A: Sorry to hear of your unfortunate experience. "Failure of consideration" would not be a viable theory. The damages related to the alleged fraud and failure to maintain the bond would be recoverable in your legal action. It would likely be worth your while to have the contract terms reviewed by a California attorney, to determine what sort of action (civil lawsuit, arbitration) would be required, and to provide you with an estimate of the costs. Unfortunately for you, small claims court actions are capped at $12,500. If the contract provides for attorney fees to the prevailing party, you are in much better shape.
Lawyers, want to be a Justia Connect Pro too? Learn more ›
- California
- (916) 704-3009
- View Profile
- Answered
A:
Your situation appears to meet the criteria for failure of consideration. When you purchased the motorcycle, you reasonably expected an original model as documented by the auctioneer. Since the frame number differs from what was represented, making the motorcycle significantly less valuable, the essential terms of your agreement have not been fulfilled. This represents a fundamental breach that likely constitutes failure of consideration in contract law.
Regarding jurisdiction, while the Terms and Conditions specify California as the venue for legal disputes, there may be grounds to challenge this provision. The auctioneer's alleged failure to maintain the required $20,000 surety bond represents a regulatory violation that could potentially invalidate portions of your agreement. Additionally, courts sometimes permit consumers to file suit in their home state when there's evidence of misrepresentation or when enforcing the forum selection clause would be unreasonably burdensome.
Given the substantial difference in value ($19,000) and the documented discrepancy between what was advertised and what was delivered, you have a potentially strong case. I recommend gathering all communications, photographs, and expert opinions about the motorcycle's value to support your claim. While I've provided some general information about your situation, consulting with a legal professional in your area would give you specific guidance tailored to New Mexico and California laws governing auctions, consumer protection, and interstate commerce.
Justia Ask A Lawyer is a forum for consumers to get free answers to basic legal questions. Any information sent through Justia Ask A Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between Justia and you, or between any attorney who receives your information or responds to your questions and you, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask A Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises, or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
