Deal, or no deal?

My father decided to sell his motorhome. He e-mailed a dealer to see if they would be interested and the dealer duly made him an offer of £14k-£15k. My father responded saying, “OK, subject to agreeing a final price on inspection.” A date was set to meet. My father had a change of heart and decided not to sell. On phoning the dealer to cancel the appointment the dealer said he could not cancel as he had entered into an agreement and would sue my father for 'loss of profit' Surely not? After a few rude/abusive phone calls from the dealer, my father sought legal advice and, after showing all correspondence, was told that he has no case to answer. The solicitor wrote to the dealer who has now asked who to send the summons to as he intends to sue my father for £4,995 - his apparent 'loss of profit', which I think is very close to the maximum claimable in a small claims court. Any advice would be most welcome as I have my wonderful law abiding aged parents, in pieces.

Asked on 23 January 2010 by R.G., via e-mail

Answered by Honest John
It depends on whether the court holds that a contract had been entered into or not. Contracts are on the basis of offer and acceptance. There was an offer (of £14k - £15k). But your father e-mailed back, "OK subject to agreeing a final price on inspection." That never happened. A "final price" was never "agreed". Your father could, if he wished, haggle the "final price" to £20,000. The issue is anyway outside the scope of the small claims track because the actual amount in contention is at least £14,000. Your father might want to discuss these points further with his solicitor, and may decide to offer the motorhome to the dealer for £20,000. The dealer won't want it at that, but won't have a leg to stand on over the £4,950 "loss of profit". I should add that the Small Claims Track is now being widely abused by customers who buy a cheap car from a small dealer, find something wrong with it after a couple of months, then sue for the return of the full purchase price having enjoyed a couple of months of free motoring. Small dealers need to get together and establish a County Court case precedent preventing this type of small claims track judgement, asserting dealer rights to rectify faults rather than allow rejection with no right to repair.
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