I recently purchased a new car and sold my junker to a family friend. Because this person cannot afford to pay everything up front, I agreed to allow him to make 4 monthly payments to me.
I want to make sure that I am covered in case he becomes delinquent in paying me.
What do I need to do to make this contract legally binding?
2007-02-13 04:34:55 · 8 answers · asked by LG 1 in Politics & Government ➔ Law & Ethics
agree with first poster. i couldn't have said it better.
2007-02-13 04:43:50 · answer #1 · answered by Anonymous · 0⤊ 1⤋
CREATE A WITNESS
If you did not write a contract and get it signed before giving over the car, write one up and take a disinterested person (say, someone you're giving a ride to the drugstore or any similar artifice) with you while you discuss the contract & terms with the buyer. Keep in mind that all parties of a signed contract get a copy, so take an extra copy for the buyer. A contract should include that a defaulting buyer is liable for recovery expenses because otherwise it could cost you more to get the car back on default than is owed on it.
Voila even if the buyer for any reason doesn't sign or otherwise tries flimflamming, you have created a witness that you sold the vehicle on promise of repayment.
Being delinquent on payments and owing you may be the least of your problems. Another issue - have you already signed the vehicle over? If you did, don't ever do that again until the vehicle is paid for and the check cleared the bank. And what about proving you sold the car once it's signed over, did the buyer register in his/her name or are you still under liability of being the registered owner?
And now you get into insurance issues ... who is the insured?
These are some reasons why you need that contract, whether on paper or via the created witness.
2007-02-13 04:53:45 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Of course a contract, just as auto dealers use, would be sufficient to be legally binding.
But since this is a family friend (unless he's a known scammer or something), I would simply hang on to the title, and not transfer it to his name until he's paid the 4 payments.
2007-02-13 04:51:53 · answer #3 · answered by Anonymous · 0⤊ 0⤋
The below listed website provides a pretty good "sales contract" that you can make additions to in order to suit your specific needs!
There is also included an additional clause should the buyer fail to make payments after you turn over the keys!
Best wishes!
2007-02-13 04:48:12 · answer #4 · answered by KC V ™ 7 · 0⤊ 0⤋
Easy - write up a contract and both of you sign it, perferably with a notary or other "witnesses". Dont give him the pink slip until he has paid it all off - but make sure he signs it, and that you send off the Release of Liability - if not, if he gets into an accident with you still listed as the owner - its on YOU.
The best way to make enemies is to lend money to a freind... Remember that next time, and hopefully this guy does you right.
2007-02-13 04:44:44 · answer #5 · answered by YDoncha_Blowme 6 · 0⤊ 1⤋
If he signs an agreement setting forth the terms of the payment, you have legally enforceable contract, so long as the buyer has legal capacity to make financial decisions.
2007-02-13 04:50:57 · answer #6 · answered by Anonymous · 0⤊ 0⤋
just make up a contract stating all the paticulars. How much is owned, how the payments are arranged etc. Then you, him and two witnesses, 1 provided by each of you sign it. (the witnesses are so he can't say you forged his sig) best way to go is have it signed in front of a notary and have them put their stamp on it.
2007-02-13 04:40:25 · answer #7 · answered by jwk227 3 · 2⤊ 1⤋
You just need to state clearly in the contract that id he misses one payment you have the right to take the car back. Both of you sign it...that's it.
2007-02-13 04:43:16 · answer #8 · answered by Anonymous · 0⤊ 1⤋
Put a Lein on the tittle
2007-02-13 04:43:42 · answer #9 · answered by chubyshady_plays_the_cards 3 · 0⤊ 1⤋