Is a purchase agreement between a buyer and auto broker legally binding?
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Is a purchase agreement between a buyer and auto broker legally binding?
Auto broker and I signed a purchase agreement for the price of a car. 2 days later he says he needed $1k more and wanted to back out of the deal. We agreed upon the price of the car but then he said his seller would not give him the help he needed to sell it for that price and needed $1k more. I disagreed saying the “purchase agreement” we both signed with all of the terms was a binding document; he claimed it was merely “an offer”. Is he able to back out of the deal like this? On the agreement were terms stating that the buyer would be liable for the money if he backed out but it says nothing about the seller.
Asked on January 4, 2012 under Business Law, Oregon
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
For a definitive answer, you should have an attorney review the document--the specific language of contracts controls them.
That said, as a general matter, if the agreement indicates that party 1 will sell party 2 a car for $X, that would seem to constitute a binding and enforceable contract. Party 1 would not be able to ask for more money for the car, even if his/her own costs increased, unless the agreement somehow allowed for that, such as by saying something to the effect that if the cost to the broker is more than contemplated, the broker may pass that cost on to the buyer; or if the agreement stated merely that the broker would use his/her "best efforts" to procur the car for a certain price, which would allow him/her out of it if that could not be done.
However, apart from the above, it would usually be the case that what you describe is a binding contract to sell a car for $X, and you could, if necessary, sue to enforce it.
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