question Can you sue a buyer for backing out of a deal?

[NewR]

Hi everyone,

The other day, after negotiating back and forth, we were offered a fair amount for one of our domains from the buyer and we accepted. This was over email.

Anyway, days later they say they are not doing it anymore because they think the domain is worth less and they’re willing to do half the price we agreed to. We have no interest in halving the price.

So, the question is does an accepted offer for a domain (over email) serve as a valid contract that we can take legal action over if they do not honor it?

Please let me know. Also, if anyone knows of any actual lawsuits where this happened please let me know of them. I imagine this is a common occurrence.

M

 

[wwwweb]

New generation of buyers close deal first, worry about money/financing second. Many times it does not come thru, and they go radio silent. Just the way it goes, unless you signed contracts really no recourse.

 

[TERADOMAIN]

Hi friend & all other friends here,

Always believe in happy deal where buyer and seller both happy with end result. There is no fun in forcing someone to complete the deal if for any reason they changed their mind due to any circumstances.

I always make sure both side happy with end result as buyer/seller.

2019 I had completed many successful deal in good range.

2019 I had many buyer backed out deals totaling $XXXXXX . Yes we do not like when someone agree to something and changed their mind. But give them benefit of doubt.

Thanks

 

[MapleDots]

Hi everyone,

The other day, after negotiating back and forth, we were offered a fair amount for one of our domains from the buyer and we accepted. This was over email.

Anyway, days later they say they are not doing it anymore because they think the domain is worth less and they’re willing to do half the price we agreed to. We have no interest in halving the price.

So, the question is does an accepted offer for a domain (over email) serve as a valid contract that we can take legal action over if they do not honor it?

Please let me know. Also, if anyone knows of any actual lawsuits where this happened please let me know of them. I imagine this is a common occurrence.

M

Imagine the car business, there would be a lot of lawsuits if every negotiation was considered final before an actual bill of sale was drawn up.

SO the answer to your question is no, an email chain is not a legitimate contract and hence your mistake. Send a bill of sale and once returned signed then you have a contract.

A bill of sale also protects you in case funds don't clear, it shows you as the owner until such time as you receive full payment.

 

[Silentptnr]

If you have actual damages as a result of the buyers failure to perform *under a valid executed contract* you could seek relief through litigation.

In the absence of a contract it would be futile.

Based on the exchange you described, I would double the price to that buyer and move on.

 

[NameAcquisitions]

Giving your money to an attorney to chase the nonpaying buyer will probably be a bad idea. One party is likely to make out in this situation, and it will not likely be you. Just my .02.

 

[NameAcquisitions]

I’ll add. I’ve been in business 20 years and have initiated litigation several times. I can only recall one instance in (maybe two) which it was money well spent. For the others i think i made some attorneys very happy, but not me.

Litigating anything should be a last resort, and done only after very careful thought about the cost and likely result.

 

[bulkdomainz]

This deal would be for $100k by the way, so we’re not interested in just moving on. If it was a small deal we would of course let it go.

Someone (a company) counter-offered me £10,000,000 on a domain via a platform about a year ago, and I accepted. Screenshot attached. They never even bothered to respond to my emails off-platform, till date. Sue them? No point. What if you successfully sue him - slim chance anyway - and find he (or the company) only has £100 to their name. Suing is one thing; recovery of any award is another!

 

[bmugford]

The bar to actually file a lawsuit is pretty low. The bar and costs to actually win one are rather high.
It is rarely going to make financial sense to pursue a potential buyer that backs out.

Brad

 

[Silentptnr]

I never forget that as a seller I can never selling until a deal is completed.

To me, that means working on getting an increasing commitment from a buyer.

For example, i might ask, "Should I take the domain off the market?"

If yes, then let's do a loi. If no, then, Oh so we are just talking at this point, right?

Anyway, I never force a deal and I know I'm always selling until it's done. Sometimes closing a deal takes long.

 

[wwwweb]

Someone (a company) counter-offered me £10,000,000 on a domain via a platform about a year ago, and I accepted. Screenshot attached. They never even bothered to respond to my emails off-platform, till date. Sue them? No point. What if you successfully sue him - slim chance anyway - and find he (or the company) only has £100 to their name. Suing is one thing; recovery of any award is another!

That looks like a typo as it shows $10,000,500, obviously.

Dan tends to have a lot of deadbeats that make offers, and then stop responding, not sure why.

 

[Casey L]

Even if you sued and won, collecting payment is a whole other beast.

 

[BrandAptly.com]

I second the motion to cut your losses and move on. Like The Durfer said, if the domain is truly worth $100k, the 'real' buyer is right around the corner.

 

[bulkdomainz]

That looks like a typo as it shows $10,000,500, obviously.

Dan tends to have a lot of deadbeats that make offers, and then stop responding, not sure why.

It wasn't a typo . I concluded that was is own way of getting back at me for declining his £150 opening offer. I tracked him down and his company actually have an app that matches the domain. He ignored all invitations to get negotiation re-started!

I only ever had 5 offers via DAN:

1. This unserious £10,000,500 bloke
2. 2 x successful deals
3. 1 x rejected Counter-Offer (I rejected)
3. 1 opening offer I missed cos I was offline for a few days. Tracked him down but he ignored all messages via DAN and off-DAN.

 

[IMEZI]

This deal would be for $100k by the way, so we’re not interested in just moving on. If it was a small deal we would of course let it go.

what was your point for lawsuit? yes of course you will propose compensation, but you have to remember it will take more time more money without any guarantee that you could win over the case, eventough you win the case the compensation could be cut by the jury...
why dont you take the 50K deals, proceed to more legal binding agreement along with time frame for payment settlement

 

[ovokate]

Someone (a company) counter-offered me £10,000,000 on a domain via a platform about a year ago, and I accepted. Screenshot attached. They never even bothered to respond to my emails off-platform, till date. Sue them? No point. What if you successfully sue him - slim chance anyway - and find he (or the company) only has £100 to their name. Suing is one thing; recovery of any award is another!

Spot on