How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask TexLaw Your Own Question

TexLaw
TexLaw, Attorney
Category: Legal
Satisfied Customers: 4164
Experience:  Lead trial/International commercial attorney licensed 11 yrs
17219180
Type Your Legal Question Here...
TexLaw is online now
A new question is answered every 9 seconds

I HAVE A SMALL CAR LOT AND A FORMER FRIEND AND I HAD AN AGREEMENT

Customer Question

I HAVE A SMALL CAR LOT AND A FORMER FRIEND AND I HAD AN AGREEMENT FOR HIM TO FINANCE SOME BUY HER PAY HERE LOANS..HE HAS NO LICENSES AND I HAVE ALL OF THEM...WE WOULD SPLIT THE PROFIT ON THE DEALS AND EVERYTHING WAS FINE UNTILL LAST OCT WHEN HE STARTED DOING THE SAME THING WITH A FORMER EMPLOYEE OF MINE AND STOPPED DOING IT WITH ME...NEITHER OF THESE 2 GUYS HAVE A DEALERS OR FINANCE LIC..I HAVE TALKED TO SOME PEOPLE AND THEY TELL ME SEEING AS NONE OF THE CONTRACTS HAVE BEEN SIGNED OVER TO MY FRIEND THAT THE CONTRACTS AND PAYMENTS SHOULD BELONG AND BE PAID TO ME AND I OWE MY FRIEND FOR THE TITLES THAT I HAD A LIEN PUT ON WHEN WE DID THE DEALS ....WHO REALLY OWNS THE CONTRACTS AND WHO SHOULD GET THE PAYMENTS...I THINK I MIGHT OWE HIM FOR THE CARS AND THE CONTRACTS ARE MINE...THANK YOU IN ADVANCE FOR YOUR ANSWER.
Submitted: 1 year ago.
Category: Legal
Expert:  TexLaw replied 1 year ago.
Hi,

Thanks for your question. I need you to clear a few things up for me:

You say you had an "agreement" with your friend who was financing the purchases. Did you have this agreement in writing?

Also, if you had the license, where were the cars being kept and who had the actual titles?

Finally, how can the titles be changed to the buyers name if the title was in your name?

I look forward to hearing back from you.
Customer: replied 1 year ago.

I RESPONED BUT NO ANSWER

Expert:  TexLaw replied 1 year ago.
Hi,

I'm sorry, but your response did not post. Can you please repost it? I'm standing by.
Customer: replied 1 year ago.

WE HAD A VERBERAL AGREEMENT ONLY...I HAD ALL THE LICENSES DUE TO HAVING A SMALL CAR LOT...I PUT THE LIENS ON THE TITLES TO PROTECT MY FORMER FREIND.

Expert:  TexLaw replied 1 year ago.
OK. This kind of verbal agreement can be enforced, but it's not easy.

If the cars were being purchased and sold under your license, and you have your name on the lien on the titles, then you have a right to seek payment for your half of the profit, according to your verbal agreement.

They are acquiring the cars by using your license, correct?

And they are selling the cars on your lot, correct?
Customer: replied 1 year ago.

the liens are in favor of my friend ...the cars were sold at my lot by me...who owns the contracts and and the rights to the payments from the customers

Expert:  TexLaw replied 1 year ago.
As the cars are being sold under your dealership license on y our car lot, you own the contracts and the rights to be paid.

However, the fact is that you have put the car titles in the name of your friend. This was a bad move on your part, in addition to not having a contract.

The best thing you can do at this point is to hire a local lawyer to sue your friend for fraud and breach of contract, and to send a demand for the payments that your friend has illegally isolated from you.

You also need to block your friend from coming onto your car lot and demand that he immediately surrender all the car titles to the vehicles which are on your lot.
Customer: replied 1 year ago.

who is legally able to collect the payments until this legal mess is settled

Expert:  TexLaw replied 1 year ago.
OK. Let's back up a little bit.

Do you know if he is using a contract to sell the vehicles? If so, the person named on the contract as the seller is the one who is able to legally collect on the accounts.

Are you named on the contract, or is he?
Customer: replied 1 year ago.

I'M THE SELLER...HE IS ONLY LISTED AS THE LIEN HOLDER...THE CONTRACTS HAVE NEVER BEEN ASSIGNED TO ANY ONE...JUST BLANK FOR ME TO ASSIGN TO SOMEONE...THE ONLY PLACE HIS NAME APPEARS IS ON THE TITLE APP AND THE TITLE WHEN THE TAG WORK IS DONE...

Expert:  TexLaw replied 1 year ago.
If you are the seller, then you have the right to collect on the the contracts by the very fact that you are listed as a party in the contracts. He cannot collect from the buyer as he is not a party to the purchase agreement.
TexLaw, Attorney
Category: Legal
Satisfied Customers: 4164
Experience: Lead trial/International commercial attorney licensed 11 yrs
TexLaw and 17 other Legal Specialists are ready to help you
Customer: replied 1 year ago.

I WAS TOLD THAT HE CAN COLLECT ON THE CONTRACTS BECAUSE HE PAID FOR SOME OF THE CARS WE DID AND I'M IN RISK BECAUSE I DIDNT CHECK TO SEE IF HE HAD PROPER LICENSES

Customer: replied 1 year ago.

IS THERE ANY WRITTEN LAW OR STATUE THAT STATES THIS..THIS THE LAST QUESTION ...THANK YOU FOR YOUR HELP SO MUCH

Expert:  TexLaw replied 1 year ago.
There is no written law/statute that is going to apply specifically to your situation.

In your situation, you (the car dealer) are listed as the seller in an automobile purchase agreement. Under that agreement, the buyer owes the payment for the car to you. The fact that your former friend helped finance the purchase of the vehicles does not mean that he has a right to collect the money directly. He has a right to collect from you, and if you fail to collect from the buyer, he can then try to enforce against the buyer as a "third party beneficiary". But the buyer does not owe him this money until there is a determination by the court that your former friend is in fact a third-party beneficiary as to this specific vehicle.
Customer: replied 1 year ago.

MY REPLY ON JUNE 10 WAS NOT ANSWERED ABOUT AM I AT RISK OR FAULT NOT CHECKING HIS LICENSE.

Expert:  TexLaw replied 1 year ago.
I'm not sure what you mean by "not checking his license."

My understanding of your situation is that you and your former friend had an agreement wherein you had a dealership license and he had money to finance the purchase of vehicles to sell on your lot.

He doesn't need a license to enter into this deal with you, and you are not liable for that. However, he cannot sell the vehicles without having a dealer license. That's why you are listed on the purchase agreements.

You've told me before that on the title, your former friend is listed as the lien holder rather than you as the dealer. This whole deal is not correct. You should be listed on the title, not your friend. But your friend is responsible for making sure he has a license, not you. So if he is trying to cut you out of these deals, you can report him to the state for selling without a dealership license.

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Last | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Not only did he answer my Michigan divorce question but was also able to help me out with it, too. I have since won my legal case on this matter and thank you so much for it. Lee Michigan
 
 
 

Meet The Experts:

 
 
 
  • Tina

    Lawyer

    Satisfied Customers:

    8436
    JD, BBA Over 25 years legal and business experience.
< Last | Next >
  • http://ww2.justanswer.com/uploads/MU/multistatelaw/2011-11-27_173951_Tinaglamourshotworkglow102011.64x64.jpg Tina's Avatar

    Tina

    Lawyer

    Satisfied Customers:

    8436
    JD, BBA Over 25 years legal and business experience.
  • http://ww2.justanswer.com/uploads/RA/ratioscripta/2012-6-13_2955_foto3.64x64.jpg Ely's Avatar

    Ely

    Counselor at Law

    Satisfied Customers:

    19941
    Private practice with focus on family, criminal, PI, consumer protection, and business consultation.
  • http://ww2.justanswer.com/uploads/FL/FLAandNYLawyer/2012-1-27_14349_3Fotolia25855429M.64x64.jpg FiveStarLaw's Avatar

    FiveStarLaw

    Attorney

    Satisfied Customers:

    8189
    25 years of experience helping people like you.
  • http://ww2.justanswer.com/uploads/jespoag/2008-12-17_222355_jessepic.jpg JPEsq's Avatar

    JPEsq

    Attorney

    Satisfied Customers:

    2132
    Experience as general attorney, in house counsel, SSDI, Family Law attorney, and law professor
  • http://ww2.justanswer.com/uploads/gsenmartin/2008-04-22_214950_me1.jpg Guillermo J. Senmartin, Esq.'s Avatar

    Guillermo J. Senmartin, Esq.

    Attorney

    Satisfied Customers:

    110
    7+ years of experience handling various legal matters.
  • http://ww2.justanswer.com/uploads/PA/PaulmoJD/2013-10-10_195858_JAImage.64x64.jpg Law Educator, Esq.'s Avatar

    Law Educator, Esq.

    Attorney

    Satisfied Customers:

    31621
    JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
  • http://ww2.justanswer.com/uploads/dkaplun/2009-05-17_173121_headshot_1_2.jpg Dimitry K., Esq.'s Avatar

    Dimitry K., Esq.

    Attorney

    Satisfied Customers:

    15975
    Multiple jurisdictions, specialize in business/contract disputes, estate creation and administration.