Can a dealership tear up a signed lease agreement a dayafter it was signedand then ask for a joint lessee?
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Can a dealership tear up a signed lease agreement a dayafter it was signedand then ask for a joint lessee?
My wife is leasing a car. Credit check /paperwork, including a signed lease agreement, was completed in her name. She was told all was complete, all she had to do was drop by to pick up the keys after they washed it. Upon arrival we suddenly were told that the dealership needed to add my info and all lease agreement documents would have to be started over as joint-lessees. This was to “ensure that the rates wouldn’t increase”. Since an agreement was already signed, does this pass the smell test?
Asked on July 2, 2011 under General Practice, California
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
A lease is a contract; once signed, it binds both parties. One party--the dealership--can't unilaterally change it's terms or "tear up" the lease; doing so is breach of contract, and you could bring a legal action to enforce the contract and/or seek damages (compensation).
If there was a contingency in the contract which was not met--e.g. you had to qualify for certain financing, which you did not--that would be a different story; the failure to meet the contingency could void the lease. Or if you gave false information, that would also allow them to void it. But otherwise, it seems from what you write that the dealership would have to honor the lease; they could suggest a different lease or adding your wife, but can't require it.
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