Car purchase from individual

[jugglergirl20]

We made a written agreement with an individual to purchase a car for $5000. We gave her $4000 cash and a check for $1000 which she was to return when we brought the $1000 in cash. This was a Saturday. Sunday she calls us and says her husband told her she couldn't sell the car for less than $5400 we told her we didn't want the car for $5400 and that we would like our money back. She agreed and initially we agreed to meet her to get the cash back. Monday she called again and offered $5200. We told her we wanted our money back and that we couldn't meet her due to inclement weather and she agreed to mail us a cashiers check the next day. Tuesday her husband called and left a message saying that they had spent the $4000 and couldn't return it to us. He said we should make arrangements to bring the $1000 and pick up the car. What are our legal obligations? Do we have to buy the car now for the $5000? Can we still negotiate or refuse to buy the car? Can we demand our money back?

Once they broke the agreement and raised the price, the contract was over--you may demand the money back and sue for damages if need be.