You might want to think twice before you place a domain up for sale, without first being ready to agree to the terms of the sale.
Unless the buyer is stupid or willing to consent to a change of terms, a contract in writing is binding.
Changed your mind? Can’t reneg on that deal.
By renegging on a sale, you’re opening yourself to litigation.
Domainer Gerry, who has achieved several sizable domain sales to healthcare and technology corporations all while choosing to remain under the radar, described an analogy pretty well in a recent post on DNForum – the domain name forum for seasoned domainer professionals:
“I once bought a large antique early 1800’s flatback cupboard.
I had to go back and get my truck to haul it home.
When I returned to the shop, I could not locate the piece. I thought it was on their loading dock.
I found the owners. When I asked where the cupboard was, their response was “what can I say. Someone came in and offered more money”.
To make a long story short, through small claims court I was able to not only recover the piece from the person who bought it out from under me, the sellers were ordered to pay back the other person’s money (he had offered a big whopping $100 more than I paid and I knew the jerk), surrender the piece to me, refund the money to that other buyer, and fined the total amount I had originally paid as a fine for their breech of contract and that fine was restitution to be awarded to me. The cupboard went home with me along with my money.
The asswipes that did this to me lost several thousand dollars in fines, restitution, court costs as well as the merchandise. All of this was done at the local jurisdiction small claims court. Plus, the dealers were asked to leave the antiques co-op they were part of after numerous people had heard about what they had done. The owners of the coop did not want to be represented by people who would do this to their clientele.
Was that anything different from this [renegged] domain sale? No. Regardless of where the person is located, you can file an action in your locale with small claims court (most take amounts in dispute up to $5000.00). A court ruling is a court ruling is a court ruling and the findings and awards may be in your favor. Yes, even if the sale goes through, if you have all the documentation representing what you are claiming, the sale may be reversed. “
The purpose of domain contracts and signed agreements ensures that no change of heart can arbitrarily affect the terms of the exchange. To alter terms and conditions ruling a sale, both parties have to be in agreement as well.
So next time you decide to ignore a “Sold!” agreement in order to make more money behind a buyer’s back, make sure you have a good lawyer and money to waste.
This post is 100% true!
