I live in USA. I recently visited the following website and tried to purchase gold
http://www.ajpm.com/htbin/gold.cgi
I called the 1-800 number on the website and asked about the rate. He
gave me the confirmation number of my purchase. Now I am scared
because of two reasons first it is a website and online purchase
second I want to cancel this order and don't want to purchase due to
my current financial situation.

Now my question is AJPM guy is calling me and forcing me to purchase
the gold otherwise he is going to sue me for $20000.00. Do he have the
legal to sue the customer for this ? Please tell me in detail what
legal obligations I have to face if I don't purchase ?

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Clarification of Question by monicb-ga on 22 May 2006 13:52 PDT

Thanks  jack_of_few_trades-ga for raising good point.

The transaction Amount is $7500 and method of payment agreed is Check.
The problem is with my current financial situation I don't want to take risk.

I understand Google terms in answering the questions. Here I just need
advise or insight whether anyone can do like this "Sue a customer for
not buying the item he got agreed to"

Sorry I don't have any answers for you... but someone who can answer
will want this info:

How much $$ was supposed to be involved in the transaction?

With what method were you supposed to pay for the gold? 

Is there a large transaction cost?  If you go through with the
purchase, could you simply sell the gold for a similar amount?

Personally I reckon he is jerking your chain.

Anyone running a serious business from a Hotmail Email address is dubious.

Especially when he has his own address :-

   Administrative Contact
        Rodney Scott-> rodneys@AJPM.COM
        Affordable Jewelry & Precious Metals
        304 SW Washington
        Portland, OR 97204
        US
        Phone 503-227-4653 
        Fax 

Unless he has voice recording, he would be hard pressed to prove that
you entered into a contract, and even if you did, $20,000 on a $7500
transaction is rather a lot of 'lost profit'.

What strikes me as really curious is that he is bothering to threaten
you, to date he is obviously not out of pocket.

I am not sure of the law in your jurisdiction, but my inclination
would be to tell him to get stuffed
- just to rile him, suggest that you withdrew because you were told
that his Internet site looked fraudulent.

Look at this - from their amateur page: 
  http://www.ajpm.com/pages/order.html

WE DON'T CALL YOU AND ASK YOU TO BUY COINS. IT'S BUY YOUR CHOICE THAT
YOU PLACE AN ORDER.

Who would buy gold from someone who writes : IT'S *BUY* YOUR CHOICE 
- and the spelling elsewhere is pretty poor

OUR BANK >*REFRENCE*< YOU CAN CALL STERLING SAVINGS BANK MARTHA GROSS
AT 503-228-9021.

Yet again, I am not sure about the law in your jurisdiction, but I
can't help thinking that 'Rodney' is a bit of a jerk.

As it happens, there is a good chance that gold has gone up between
your original 'phone call and now, you could always ask 'Rodney' for a
cheque for the difference.