boat deposit refund

nellycollie

hi
i'm new to mse forum although i have been getting martins email for quite a while now.
i have used the search button but could not find a definitive answer so thought i would post a thread.
2 weeks ago my dad put his narrowboat up for sale within 24 hours someone came round to look at it liked it, agreed a price and put a deposit of £500 down on the boat. the gentleman was going away for a week and would arrange the rest of the money when he got back from his holiday. within this space of time we took the boat off the market albeit we did have a bit more interest in it, we also viewed a new boat and put a deposit of £1600 down on that boat.
now the gentleman purchasing our boat has got back from his holiday he didn't get in touch for another week he then contacted us and said he would like to look at the boat again, we let him.
the day after the 2nd viewing he sent an e-mail to my dad saying he did not want the boat anymore as "his wife suffers from motion sickness" and that he would like his deposit back minus £50 for our incinvenience.
now in our families view we feel inclined not to let him have any of the deposit back seeing as he has left it for 2 weeks, we have taken it off the market so now have to pay to readvertise it and also we have put a deposit down on another boat in knowledge that he was buying our boat and let us down with a feeble excuse like that.
where do we stand and what would you guys do??

maninthestreet

His excuse was feeble - surely he already knew his wife suffered from motion sickness - but how often have you heard of someone getting seasick on a narrowboat travelling at 4 or 5 mph??? My guess he's seen another boat he likes better - why view your boat for a second time if his wife gets motion sickness?

blued

My view is that a holding deposit is non refundable and this is what I'd have written on the receipt given to him. Might sound harsh but he has bought the boat and if he's decided he doesn't want it then it is up to him to sell it on. I'd never leave a deposit that size on anything I'm not 100% sure about.

iolanthe07

You might want to give some of the deposit back (half?) as a gesture of good will, but I don't think you are obliged to, though I suppose it depends on what you wrote on the receipt.

standupguy

I think from a legal point of view you will find that a contract was struck at time of sale - for him to buy at the agreed price and for you to sell at that price.

I would say you are within your rights to to sue him for the remaining balance due under the contract.

In reality of course, you would not take it any further, but due to the breaking of the contract on the buyers part he loses all the deposit paid to recompense the costs and inconvenience.

Legally there is nothing he can do and it is up to you whether and what amount to return, if anything.

From what you say, I would stand firm and refuse any request for refund - it is not up to him to dictate how much you should keep for your trouble.

Homersimpson

What would the point a deposit be if not to prevent the buyer messing the seller around like this?

Judas

You are allowed to retain a sum for breach of contract that refunds your actual losses incurred.

Now to retain the £500 you would have to quantify where you have lost £500 by them pulling out. Taking it off the market isnt really convincing though as regardless of interest it may still not have sold.

Did you incur any costs as a result of their breach? If not the offer to retain £50 for inconvenience seems the best you will get.

nellycollie

hi thanks for all the replies guys and girls.
in someways we could have lost £1600 as if we were relying on the sale of the original boat to provide income for the new boat then the new boat would have fallen through and being we are buying from a boat retailler i wouldn't be surprised if they pocket the deposit. luckily we do have the funds to pay for the new boat but it means my dad taking funds out of his savings and then him not getting the interest from his savings until we have sold the old boat.