What to do if a buyer and I traded vehicles with no title but bills of sale and he is threatening to sue me after blowing the motor?

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What to do if a buyer and I traded vehicles with no title but bills of sale and he is threatening to sue me after blowing the motor?

A guy and I agreed to trade vehicles. I traded him a motorcycle and he traded me a car. Neither of us had the titles in our name. We both had a bill of sale from the previous owners. We then created new bill of sales signing off and transferring interest to the other. Long story short, the guy test rode my motorcycle which ran perfectly and was in excellent shape. After trading, he rode 160 miles back to his home. After putting 435 miles on the bike (and a week since trading) he emailed me saying the motor seized and he wants to trade back, otherwise he’s taking me to civil court.

Asked on August 4, 2012 under Business Law, Oregon

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Under the laws of all states in this country the giving of good legal title is implied in the sale of all cars. From what you have written, it seems that the entire transaction is voidable and each of the parties in the transaction need to accept the return of the traded cars and walk way.


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