If after signing a lease agreement for a vehiclea dealership failed to deliver the vehicle on the day they promised, is that breach of contract?

UPDATED: Feb 15, 2012

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If after signing a lease agreement for a vehiclea dealership failed to deliver the vehicle on the day they promised, is that breach of contract?

Before I signed the contract, I was told by the dealer that they have the vehicle and will be delivered the next day. The following day they failed to deliver and the manager told me that they don’t have the vehicle. I told the manager that I’m backing out of the contract because of their failure. The manager agreed. The problem is they cashed out the down payment check I gave them. What can I do?

Asked on February 15, 2012 under General Practice, California


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

If the manager of the dealership agreed to cancel your lease agreement, I would notify your bank immediately to stop the payment on the down payment check you wrote. I would also write the manager a confirming letter letting him or her know that I appreciated the cancellation of the lease and would be expecting the refund of the down payment within so many days. Keep a copy of the letter for future reference.

If you do not get the refund of your check within a reasonable time period from the car dealership, small claims might be your option.

What you have written about factually is a breach of the contract due to the timely delivery of the car. However, if the car's delivery could have been made a couple of days later, then the breach would not have been material and you would have been obligated under your lease for the car.

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