Is a deposit and a dealer's agreement to sell a contract that transfers with the sale | FerrariChat

Is a deposit and a dealer's agreement to sell a contract that transfers with the sale

Discussion in '458 Italia/488/F8' started by 65 f.i., Apr 26, 2014.

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  1. 65 f.i.

    65 f.i. Karting

    Feb 10, 2008
    187
    Santa Barbara, Ca.
    Full Name:
    Martin
    I placed a deposit with a Ferrari dealership and received an agreement to sell at MSRP under the pretext the car makes it to production. The dealership was recently purchased. I have now been contacted by the dealership which bought the dealership I had a agreement with. The successor dealer has placed me "on their interest list". Is the successor dealership typically responsible for performing on outstanding contracts associated with the dealership purchased? It seems if the assets are being transferred then so should liabilities. Outstanding liabilities may or may not include outstanding contracts?
     
  2. Caeruleus11

    Caeruleus11 F1 World Champ
    Rossa Subscribed

    Jun 11, 2013
    11,612
    You are right. It becomes a question of enforcement.
     
  3. noone1

    noone1 F1 Rookie
    BANNED

    Jan 21, 2008
    4,612
    Los Angeles
    Full Name:
    Mike
    Well, that's kind of the whole point about purchasing the assets and not the stock. I'm pretty sure there are laws the prevent discharging certain liabilities to some extent, but it doesn't cover everything.

    I've bought a business before and I remember the first thing my accountant told me was that we're buying the assets, not the company/stock to avoid any liability. He told me of a client of his who bought a transmission repair business in which he acquired the company itself instead of just the assets. Further down the line he starts getting sued by former customers whose transmissions were repaired very poorly, with used parts instead of new ones, etc. Financially ruined the guy and he committed suicide, I think.

    So yeah, I can see how it's possible the new dealership doesn't have to honor your contract. Then again, I'm not sure what the terms of being a Ferrari franchise is. Maybe they would force you to honor certain liabilities when getting the franchise transferred to them. Then again, if the pretext is merely if the car makes it to production, you might be out of luck unless they guaranteed you that they would fill your order in a certain order of allocation or within a given time frame.

    I'm actually a bit surprised that they wouldn't just honor it anyway. It's not like a 458 sells for over MSRP anymore. I'd think they'd be glad to sell you one at MSRP.
     
  4. PhilNotHill

    PhilNotHill Two Time F1 World Champ
    Owner

    Jul 3, 2006
    27,855
    Aspen CO 81611
    Full Name:
    FelipeNotMassa
    You make sense to me.

    As a businessman going out of your way to take care of new customers seems like a no-brainer way to grow your business.

    Best.
     
  5. 65 f.i.

    65 f.i. Karting

    Feb 10, 2008
    187
    Santa Barbara, Ca.
    Full Name:
    Martin
    The agreement was regarding a 458 Speciale Spider. It seems probable it will see production but there is no absolute as of yet. I hate to just sit in a "position of interest" and let the dealer hold my deposit but "no money no honey".
     

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