Illegal Or Just Unethical? Selling Banknotes You Do Not Own...yet

To add more to my original comment, I have a good relationship with my LCS and it would be insulting to pull a stunt like that. They would be quite justified in withdrawing my "most favoured customer" status.

@Cascade, if that is the case, and possibly it is, he expects the dealer to forego opportunity while he hunts for a quick profit.

I would not want such a person as a customer.

This is actually what alot of the bullion pushers do, it helps them from taking losses when the price of metals drop. This way they hold minimum inventory and have minimum exposure to price changes, buying inventory only to fill orders in essence. However, it is dangerous, since if your supplier is delayed in delivering the goods to you, you too will be delayed in sending the products to the buyer.

The uniform commercial code (which governs most contract law in the USA) does not make it illegal to sell goods you do not own, it rather focuses on intent to deliver and performance. For example if I sell 4000 widgets to Bob's Wingdings with a delivery date on the contract for two weeks from the payment date, it is completely acceptable under the UCC to not have 4000 widgets in stock at the time of the payment date and to buy them from a wholesaler the day before, so long as the widgets are indeed delivered on time and conform to the specifications of the contract (and are merchantable, ect). Depending on how rare the banknote is in question though, that might not matter, because for certain unique items a buyer can demand specific performance and where the line drawn in regards to what constitutes such an item where one can demand such specific performance is kinda gray (or grey for you limies).

Yes, a non-refundable deposit solves that grief.

He's a worm. Spend no more time on him.

Great input everyone, you have all been able to put it into words what I couldn't.




Here's his quote from the kijiji add, firstly we did not disclose the notes were UNC, nor are we a TPG by any means. This will be his excuse when the he delays delivery to his customer.

"extremely very rare pair or of specimen notes from the centennial year serial number is prefix I/P00000000. So was the very first off printed notes the notes are all in unc condition and are currently being professionally graded. So will have the proof of unc."




Good question, our business is not brick and morter so 90% of our business is conducted at shows in southern Ontario and rarely online. This gentleman showed up early to the show Sunday morning, told us his dad would be there later in the day to buy the note as a birthday gift, and then we didn't see him again. It was the second time he pulled such a stunt so about an hour before the end of the show we decided to let it go.

To be honest, we don't have much of a presence online so we thrive on dealer to dealer transactions and have plenty of regulars that buy from us and flip online themselves. This guy just stepped over the line a bit too far IMO.

So did the notes he had advertised sell? Just curious.

I don't believe so, I gave myself some time to cool off and will message him this morning asking him to remove the adds. He didn't contact us last night so his attempts to sell them at a highly inflated price has been unsuccessful.




I'll play out a perfectly acceptable scenario with a "most favoured customer," and this stuff happens all the time.

You: I see you have some banknotes and I might know someone who is willing pay a little more. Do you mind holding them while I see if I can flip them?

Me: Sure, no problem!

15 mins later....

You: I couldn't make the deal, but thank you for holding them.

Me: Ok, no problem, if something changes come back and see me.

...and now everyone is happy.