What constitutes a binding contract?

UPDATED: Aug 26, 2011

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What constitutes a binding contract?

Friend went to car dealer 1 signed a contract but later got a car from car dealer 2. Car dealer 1 says they will sue her. Friend is a student and is scared since she wants to just return the free gift from car dealer 1 (Toyota) but is afraid that they will sue her since they say they will. Since she signed a contract with the first car dealer, can they really win a law suit, even though she changed her mind and never picked up the car? They are calling her up and trying to scare her many times a day. Can she just pay for the gigt or just return it?

Asked on August 26, 2011 Washington


M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

Simply put, a contract is an agreement between to parties to do something.  There is an offer, an acceptance and "legal consideration."   Consideration is generally money.  I would sayt hat your friend has a problem here.  She entered in to a contract with dealer one and they seem to want to pursue it.  There is not a right of rescission for vehicle contracts in your state (or so it appears from research) so I would tell her to take the contract to an attorney to review on her behalf and see if there is any way that she can try and get out of it for any reason.  If you really think it has to do with the gift, tell the attorney.  I somehow do not think that that is the basis for their hounding her.  Good luck.

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