When is a motor vehicle purchase contract binding?
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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 13 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.
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