deposit on tii

[kaleb]

Originally Posted by bradford

If someone is dumb enough to offer them money for nothing, they'd be dumb not to take it.

Thank you, you beat me to the punch. What a dummy. Eh, he probably has all of his money invested already.

[Road Runner]

Originally Posted by Garrett

BMW dealerships are an extension of their arms...! Like I said, worth the legal issue alone for a few grand.

You're right, its true, by entering into contracts with third parties (customers) on behalf of BMWNA, the dealership holds themselves out as an agent of the principal (BMWNA). Among the agent's fidciary duties is to not to accept any new obligations that are inconsistent with the duties owed to the Principal and not to make a private profit or unjustly enrich himself from the agency relationship.

In other words, the dealership shouldn't be entering into contracts or obligations that BMWNA can't or won't oblige to. If it does, the dealership is liable to its principal (BMWNA) and the third party (our future tii owner) for any damages incurred.

That being said though, depending on the jurisdiction etc, if BMWNA fails to produce the tii, the damages may simply be considered the amount of the original deposit plus interest. Thats what it would be in Canada, the US is a little more litigous though so who knows...

[blitzed310]

Originally Posted by Road Runner

You're right, its true, by entering into contracts with third parties (customers) on behalf of BMWNA, the dealership holds themselves out as an agent of the principal (BMWNA). Among the agent's fidciary duties is to not to accept any new obligations that are inconsistent with the duties owed to the Principal and not to make a private profit or unjustly enrich himself from the agency relationship.

In other words, the dealership shouldn't be entering into contracts or obligations that BMWNA can't or won't oblige to. If it does, the dealership is liable to its principal (BMWNA) and the third party (our future tii owner) for any damages incurred.

That being said though, depending on the jurisdiction etc, if BMWNA fails to produce the tii, the damages may simply be considered the amount of the original deposit plus interest. Thats what it would be in Canada, the US is a little more litigous though so who knows...

But what does the deposit contract say.

[Road Runner]

Originally Posted by blitzed310

But what does the deposit contract say.

Yeah, thats the rub... The contracts. What I said is all pretty general stuff and there's ways around everything. A lot of the time though people threaten to sue regardless of what the contract they signed states just hoping to get a settlement since actual suits are more trouble than they're worth for the party being sued (esp if its a corporation).

Anyways, I'm in way over my head with this legalese stuff. I just remember it from some of my undergrad business law classes. Just my 2 cents.

[blacknbean]

dang maybe i should put a deposit down on a M1

[ppDoc]

Originally Posted by blacknbean

dang maybe i should put a deposit down on a M1

forget the m1. i'm heading to the dealer to put a deposit down on a z10

[BMWho?]

I think you guys need to cool it on rca06mcoupe a bit.

For arguments sake, let's make 2 assumptions: 1) he has a contract and 2) he is knowledgeable with his money. So he puts $500 down to give him the right to buy a car should it be produced, right? OK, so what is the risk? Well let's say that, as a knowledgeable investor, he is able to make 10% on his $ in an average year. That's $500 out of pocket for one or two years. His absolute worst case is losing $100 over 2 years, before taxes! What's so stupid about that? If he really wants this car and wants to be first on the block with it, then he's made a smart move with the $500 because the return is something he places a high value on.

Now buying the car, probably at sticker, is a horse of a different color. Not too many cars out there that increase in value after purchase, unless it's limited production and he wants to flip it right away. If he did this same thing with the M Coupe he probably paid close to $60k (if loaded) for a car that today is selling for $45k new!

[ChrisK]

You guys are killing me