When is a motor vehicle purchase contract binding?

Get Legal Help Today

 Secured with SHA-256 Encryption

When is a motor vehicle purchase contract binding?

I purchased as 2007 car from a dealer on 7/31. Today, 8/2, the dealer called and said the bank wants me to drop the extended warranty that I purchased on the car because they think the payments are too high. The paperwork was all signed on Saturday morning and I was given my copies. This only makes me think something is wrong with the car.

Asked on August 2, 2010 under General Practice, Wisconsin

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

A contract is binding when signed. If someone doesn't want to honor the contract as is, that will in many cases provide grounds to sue to enforce the contract or obtain monetary compensation (damages). Note that if there is a financing contingency (common in contracts like this; they are subject to or depending on obtaining financing), that might prevent you from suing the dealer if the financing falls through owing to bank (not dealer) actions. However, in that event, even if you could sue to enforce the contract, you should have grounds to rescind, or cancel, the contract. You bargained to get a certain thing; the dealer should not be able to make you purchase something different or lessor, though always check the contract of sale to see what exactly the terms are.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption