What to do about a breach of contract?

My girlfriend bought a new car from a car dealership last month. She paid $5000 down and the rest was to be covered by a loan they were to find for her. Her mother also co-signed for the car. Last night they called saying that they were unable to get her the loan and she would have to return the car. I looked at the contract she signed with them and it states that the seller has the right to opt out on the contract if they contact her within 10 days of her signing. Last night was the first time they had contacted her since signing; well over the 10 day period.

Asked on October 18, 2011 under General Practice, California

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

If your girlfriend signed another contract with the documentation you speak of that is based on contingency of finding a lender, then you are obligated to return the motor vehicle and the dealer is obligated to return the $5,000.00. Your girlfriend simply cannot keep a car for only $5,000.00 with no financing to complete the rest of the sale. Your girlfriend was not able to get a loan, so the keeping of the car could be considered illegal conversion. Talk to the consumer protection bureau in your state to see if anyone can help to get a loan or if the dealer is licensed to also lend.


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