Can an auto dealer rescind a contract just because the buyer moves out of state?

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Can an auto dealer rescind a contract just because the buyer moves out of state?

My daughter took possession of used car from a local CA dealer and then immediately drove to Washington for duty, USN. Now the dealer wants to rescind the contract. Is my daughter responsible for returning the car?. She can’t leave her post and drive across 3 states to return the car. Can the dealer be made to retrieve the car?

Asked on July 31, 2011 California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

The dealer can only rescind the contract on the following grounds:

1) The agreement specifically says that it either void, or terminated, or may be rescinded, in the event the buyer moves out of state.

2) Your daughter lied (committed) fraud in negotiating or executing the contract--for example, you told the dealer she was going to remain local, and that was part of why they agreed to the sale.

3) Not a "rescission" but grounds for some action by the dealer: your daughter has breached some material (or important) term of the  agreement, like not paying everything due.

Otherwise, even if the dealer would like to rescind or terminate, he can't; without fraud, breach of contract, or some specific term providing for rescission in this event, the dealer cannot require your daughter to return the car.

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

The dealer can only rescind the contract on the following grounds:

1) The agreement specifically says that it either void, or terminated, or may be rescinded, in the event the buyer moves out of state.

2) Your daughter lied (committed) fraud in negotiating or executing the contract--for example, you told the dealer she was going to remain local, and that was part of why they agreed to the sale.

3) Not a "rescission" but grounds for some action by the dealer: your daughter has breached some material (or important) term of the  agreement, like not paying everything due.

Otherwise, even if the dealer would like to rescind or terminate, he can't; without fraud, breach of contract, or some specific term providing for rescission in this event, the dealer cannot require your daughter to return the car.


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