The news first broke on the old site that Ford was suing John Cena for flipping his new Ford GT after purchasing it and, apparently, disregarding Ford's 24 month "no resale" clause.
Well, apparently Mr. Cena is firing back...sort of...
http://www.tmz.com/2018/02/13/john-cena-ford-gt-supercar-lawsuit/
Popcorn 🍿 emoji
If the contract lacks the 24 month no sale clause this could have a snowball effect beyond Cena.
:o
Quote from: Richstang on February 14, 2018, 07:40:41 PM
If the contract lacks the 24 month no sale clause this could have a snowball effect beyond Cena.
:o
I'll bet the original application contained the 24 month clause and somewhere in the contract is something referring to acceptance of original application to purchase. Ford pays their lawyers too much money to screw up like this. However if they did there will be a lot of $500-700,000 GTs on the market.
If the clause is not in the contract agreement, there are going to be a lot of lawyers/law firms no longer of Ford retainer.
Truly, it'll be interesting to see how this plays out. I'm certain that Ford is wanting to make an example of John Cena and what NOT to do with you allocation.
I've heard rumors from people in the know, and John more than doubled his money by flipping the car. 8)
Quote from: Shelby_0022 on February 14, 2018, 11:38:22 PM
I've heard rumors from people in the know, and John more than doubled his money by flipping the car. 8)
I read somewhere he sold for $2M
He is worth something like $20M. Did he need the money?
Did he really need the allocation that someone else might have seriously wanted?
John Cena, just another celebrity who thinks he is above the law. Ford surely didn't leave the 24 month, none flip clause out of any contract for the FORD GT.
https://www.motorauthority.com/news/1115314_john-cena-asking-judge-to-dismiss-ford-gt-lawsuit
Ford's lawsuit, obtained by Motor Authority and filed in the U.S. District Court in Eastern Michigan, offers three documents as proof of the initial agreement: the Ford GT Application Program Terms and Conditions; an Affidavit of Eligibility and Release that Cena signed and notarized on July 29, 2016; and the Ford GT Order Confirmation that he completed on January 28, 2017. The Ford GT Order Confirmation contract includes language stating that the buyer agrees not to sell the vehicle within the first 24 months of delivery, as you can see here:
Ford GT flipping agreementFord GT flipping agreement
Cena's signature is located at the bottom of the page, along with the date of 1/28/17. A deposit for half of the sale price, or $230,000 was then due by 2/1/2017 or the build date would be delayed.
very interesting... need some popcorn. The lawyers will be cleaning up $$$
Disloyal. Ford is not only a brand, they are a living, breathing family. If I promised Ford not to flip the car for two years I would not flip it. Besides, I'd rather live in a cardboard box than flip that car anyway.
Richard E.
I would take a wild guess and say that I'll bet 'ya that more then one has "changed hands". Like who wouldn't want one (presuming they could afford it) and who could resist others offering to stuff money into your pockets?
I think that there just needs to be an agreement to not openly violate the "purchase agreement"?
Is Ford going to try to take the car back now?
Maybe this is all Ford's fault anyway? They could have issued the title with a lien on it?
Quote from: shelbydoug on February 16, 2018, 03:13:11 PM
I would take a wild guess and say that I'll bet 'ya that more then one has "changed hands". Like who wouldn't want one (presuming they could afford it) and who could resist others offering to stuff money into your pockets?
I think that there just needs to be an agreement to not openly violate the "purchase agreement"?
Is Ford going to try to take the car back now?
Maybe this is all Ford's fault anyway? They could have issued the title with a lien on it?
The best succinct solution!
Max
I suspect that there are a good number of insider deals with owners who have made legal arrangements, for a nominal fee, or something phenomenal, to transfer ownership to another party after 24 months. Also, watch the auctions in two years. In addition (pun intended), production is way behind schedule so future resale numbers will be insane if the previous Ford GT program is any indicator.
Quote from: 2112 on February 15, 2018, 01:09:02 AM
Quote from: Shelby_0022 on February 14, 2018, 11:38:22 PM
I've heard rumors from people in the know, and John more than doubled his money by flipping the car. 8)
I read somewhere he sold for $2M
He is worth something like $20M. Did he need the money?
Did he really need the allocation that someone else might have seriously wanted?
Without going too far out of my way to talk about something that I have no first hand knowledge of..
I had heard from a friend that Cena actually sold the car for $1m. The next guy supposedly sold it for $2m. Have no way or verifying the story and personally I dont care, but figured it was worth throwing out there.
And I can vouch for the fact that the current market value for one of the FGTs is $2m+, at least it was before the Cena thing went public as I had acquaintances who had been offered that much for their cars. (and said no, with no intention of selling in the first place) Now, I'm sure, some people who might have considered selling their car before are too freaked out to do so after seeing that Ford is willing to go after those who do.
Whether or not that sort of market value lasts all the way through the 24 month "no sale" period, I sort of doubt it. I think its a super amazing car..but those sorts of offers are likely coming from some of these guys that just collect the "latest" supercar and have unlimited resources to buy all the various "Hyper cars" which routinely now retail for 2-3-4M+, depending on the car. They were told no for the first time in their life by FoMoCo. Once there are 1000 new FGTs out there, the appeal might dim a bit in the eyes of those sorts of guys although I bet they are still worth more than their original MSRP by a good margin.
Anyway, my 2 cents.
Vern
There have been past reports of Cena being in financial difficulty and not paying lots of bills despite making multi-millions, which had led to the sale of the GT. 8)
Ron Pratte donated his FGT to Ray Evernham's charity and it was sold with Ford's blessing at Barrett-Jackson last month for $2.5M.
Not sure all went to charity. And charity will be an approved exception and be sold for silly numbers.
Contract law:
The general rule of contract law: All ambiguities are construed against the drafter of the instrument.
Outcome: If the court chooses to follow this maxim, then Ford loses.
Competing rule of contract law: If there are ambiguities, some courts will disregard the parol evidence (a rule that excludes evidence of details before final contract formation) and allow extrinsic evidence in to show the intent of the parties though it was not reduced to a writing. In essence, the court will look outside the four corners of the contract and allow extrinsic evidence in to determine the intent of the parties.
Outcome: Ford may win.
Damages: Court may award Ford compensatory damages depending on how the complaint is drafted. And therefore may get the profit from the sale.
Cena can assert the affirmative defense that the language is boilerplate and therefore will not be given force and effect and further that it interferes with the freedom to contract.
Richard E.