Contracts

00135 · 01-25-2009, 12:39 AM

Hi all, first time poster, need to find out some info regarding contracts.

When you sign a contract and leave a deposit, are you likely to be sued for any costs if you cannot get finance? Or will you just lose your deposit and nothing more come of it?

Another question is... Say you had a contract on a car, but happened to have found another car you prefer and were stupid enough to put a deposit on that too. If you went ahead with getting finance for one of the cars and took delivery, and thus not be able to finance the other car, would this get you out of the initial contract?

Thanks to anyone who can help out and give some opinions or info.

oldman135 · 01-25-2009, 01:24 AM

Read your contract fine print usually on the back of what you signed. Each dealer can have different penalties as far as cancelling goes. Mine had a penalty of 10% of the value of the car even though I had not paid a 10% deposit. Whether or not they would try and get the 10% if I had cancelled is questionable.
There was also a clause that allowed me to cancel the order if the car had gone up in price since I ordered or if it was more than 4 weeks late after the expected delivery date written on the contract.

MikeVictor · 01-25-2009, 06:47 AM

A contract is exactly that, and spells out precisely the obligations and rights of each party to the contract.

If you do not proceed with your sale, you will find that you will usually forfeit your deposit. Most contracts are (or you should opt for it) subject to finance, so that if you cannot get finance you are not obligated to proceed with taking delivery.

Ultimately you need to take responsibility for reading your contact and knowing what should and shouldn't be appropriate. I don't mean to sound harsher than I probably am, but if you go and sign a contract and then want to get out of it because you then find something else? I reckon you're probably going to lose your deposit.

I'm putting this one down to tough love mate. Hopefully this will be a learning experience for you!

00135 · 01-25-2009, 08:27 PM

Thanks mattyv, I understand all that, but basically are just seeing if there are ways to get out of a contract.

Not worried so much if we lose the deposit, more worried about getting sued for 'hidden costs' as the contract states we could be liable for any costs that may be incurred by the dealer.

And yes, lesson learnt

01-25-2009, 12:39 AM	#1
00135 Registered 0 Rep 3 Posts Drives: None yet Join Date: Jan 2009 Location: Sydney iTrader: (0)	Contracts Hi all, first time poster, need to find out some info regarding contracts. When you sign a contract and leave a deposit, are you likely to be sued for any costs if you cannot get finance? Or will you just lose your deposit and nothing more come of it? Another question is... Say you had a contract on a car, but happened to have found another car you prefer and were stupid enough to put a deposit on that too. If you went ahead with getting finance for one of the cars and took delivery, and thus not be able to finance the other car, would this get you out of the initial contract? Thanks to anyone who can help out and give some opinions or info. Last edited by 00135; 01-25-2009 at 08:09 PM..
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01-25-2009, 01:24 AM	#2
oldman135 Registered 0 Rep 1 Posts Drives: 135i Join Date: Jan 2009 Location: NSW Australia iTrader: (0)	Read your contract fine print usually on the back of what you signed. Each dealer can have different penalties as far as cancelling goes. Mine had a penalty of 10% of the value of the car even though I had not paid a 10% deposit. Whether or not they would try and get the 10% if I had cancelled is questionable. There was also a clause that allowed me to cancel the order if the car had gone up in price since I ordered or if it was more than 4 weeks late after the expected delivery date written on the contract.
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01-25-2009, 06:47 AM	#3
MikeVictor Brigadier General 210 Rep 3,288 Posts Drives: anything given a chance Join Date: Jul 2008 Location: .au iTrader: (0) Garage List 2016 Mazda ND MX-5 [10.00]	A contract is exactly that, and spells out precisely the obligations and rights of each party to the contract. If you do not proceed with your sale, you will find that you will usually forfeit your deposit. Most contracts are (or you should opt for it) subject to finance, so that if you cannot get finance you are not obligated to proceed with taking delivery. Ultimately you need to take responsibility for reading your contact and knowing what should and shouldn't be appropriate. I don't mean to sound harsher than I probably am, but if you go and sign a contract and then want to get out of it because you then find something else? I reckon you're probably going to lose your deposit. I'm putting this one down to tough love mate. Hopefully this will be a learning experience for you!
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01-25-2009, 08:27 PM	#4
00135 Registered 0 Rep 3 Posts Drives: None yet Join Date: Jan 2009 Location: Sydney iTrader: (0)	Thanks mattyv, I understand all that, but basically are just seeing if there are ways to get out of a contract. Not worried so much if we lose the deposit, more worried about getting sued for 'hidden costs' as the contract states we could be liable for any costs that may be incurred by the dealer. And yes, lesson learnt
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