How can you void a contract to buy a new car?

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How can you void a contract to buy a new car?

I signed a purchase agreement with a dealership on the promise that they would hold my check until my insurance check came through. However, the insurance never paid me so now I cannot afford the car. Even though I have not paid for the car, the dealership is saying that it is mine because I signed the purchase agreement.

Asked on December 9, 2011 under Business Law, Mississippi

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Unless the contract included some form of "insurance" or "finance" contingency--that is, the purchase agreement itself stated that you could terminate it if your insurance check did not come through--you are obligated under the contract, and may be sued for damages if you breach it (i.e.not buy the car). It's like with a home purchase contract: unless the contract had  mortgage or finance contingency, the buyer is obligated under the contract even if she or he cannot get financing.


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