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  1. #1
    Join Date
    Mar 2010
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    Default Purchase of Converted Goods

    My question involves criminal law for the state of: CA

    I recently bought $50,000 in equipment from a man acting as an agent for the owner of the gear. I signed a contract with the agent, paid him the first installment and picked up the equipment (at considerable transportation cost). The original owner recently contacted me and said that he did not approve of the purchase price and either wanted more money or for me to return the equipment.

    I understand that the owner has a valid disagreement with his agent over this, but what are his claims to me? I purchased this gear in good faith and paid a fair market price. Ideally, I would like to keep the gear, but if I return the equipment, I would like to be compensated for my incurred expenses of transporting, storing and repairing the equipment. What are my rights and obligations?

  2. #2
    Join Date
    Jan 2006
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    38,867

    Default Re: Purchase of Converted Goods (Not Stolen)

    was the man legally an agent for the true owner? and if he was, did he have the authority to contract with you for the price you paid?

    If not, then the "agent" had no legal right to enter into a contract. If you want your transportation costs, you will need to address the agent for that, if in fact he was not legally an agent of the owner.

  3. #3
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    Mar 2010
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    Default Re: Purchase of Converted Goods (Not Stolen)

    He was an agent for the owner with a verbal agreement to sell the goods. The agent was storing the equipment, and for the past 10 months has been trying to sell it (in return for a commission). The owner is claiming that the agent didn't have permission to sell at the price that he sold, although after 10 months of selling the agent had determined that this was the best option

  4. #4
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    Default Re: Purchase of Converted Goods (Not Stolen)

    The owner is claiming that the agent didn't have permission to sell at the price that he sold,
    so, you are in the disagreement between the agent and the owner. If the agent did not have permission to sell the equipment at the price he did, then the agent could not legally sell it to you and as such, the deal is voidable by the owner.

    the problem you have and would have to prove if you want to argue this is: did the agent have the legal authority to sell the equipment at the price you paid.

    the other problem is: if the agent did not have the authority to sell at the price you paid yet he argues he did, to be able to seek compensation for your expenses involved with the sale, you would have to argue he acted outside of his authority. Again, you end up in a disagreement between the agent and the owner.

    although after 10 months of selling the agent had determined that this was the best option
    unless he was given the authority to make that decision by the owner, then what the agent determined was the best option is irrelevant.

  5. #5
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    Mar 2010
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    3

    Default Re: Purchase of Converted Goods (Not Stolen)

    This does seem like a problem between the agent and the owner, and I don't like that I (and my business) have been caught in between. It really comes down to what the (verbal) agreement was between the owner and agent, and unfortunately each one has a different opinion of what the agent's duties were.

    It cost about $5,000 to transport the goods (not counting storage and repair costs), and would cost a similar amount to return them (which the owner wants us to cover). At the moment, I have the equipment and am using it, so I don't need to take action against anyone, but I would like to protect myself and to avoid being penalized for a poorly worded agreement between the owner and agent.

  6. #6
    Join Date
    Jan 2006
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    38,867

    Default Re: Purchase of Converted Goods (Not Stolen)

    Quote Quoting xander07
    View Post
    This does seem like a problem between the agent and the owner, and I don't like that I (and my business) have been caught in between. It really comes down to what the (verbal) agreement was between the owner and agent, and unfortunately each one has a different opinion of what the agent's duties were.

    It cost about $5,000 to transport the goods (not counting storage and repair costs), and would cost a similar amount to return them (which the owner wants us to cover). At the moment, I have the equipment and am using it, so I don't need to take action against anyone, but I would like to protect myself and to avoid being penalized for a poorly worded agreement between the owner and agent.
    there really isn't much you can do to protect yourself. If the owner sues and it looks like you will lose, I would suggest arguing that the owner or his agent must pay for return transport costs as you acted in good faith and as such, should not be required to be exposed to further injury.

    using the equipment may not be a good idea. If the owner sues and wins,, you may be liable for depreciation or rental value and any damages you caused.

    so, what is the agent saying about the situation?

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