California — Private Boat Sale Fell Through; Buyer Incurred Costs Before Closing. Seller Liability?
Location: California
Hi all — looking for general perspective (not formal legal advice).
I’m in California and recently sold a sailboat via a private sale. We had discussions with a prospective buyer, but there was no signed contract, no finalized closing date, and some logistics (timing, removal, mooring) were still being discussed.
We were transparent that timing uncertainty was becoming a concern for us and that we might need to proceed sooner if the sale could not close promptly. The buyer sent a small good-faith deposit, which we returned in full once it became clear the timing wouldn’t work. We then sold the boat to another buyer who could close immediately.
We did not request, require, or condition the sale on the buyer securing a slip or incurring any costs, and we were not aware of his specific arrangements for housing the boat.
The original buyer has since stated that he believes he has a legal claim and has mentioned seeking damages, including for alleged emotional distress.
From a general standpoint in California:
- In a private sale with no written contract and a returned deposit, does a seller typically have liability for costs a buyer chooses to incur before a deal is finalized?
- How do courts usually view “verbal agreements” when material terms (timing/possession/logistics) were still unsettled?
Appreciate any general insight or experiences. Thanks.
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