Auto Signed
Can an auto dealer legally try to change a purchase agreement after it has been signed by both parties?
I purchased a used car from a local auto dealer. After signing the contract and signing the loan check, trade in title, and the dealer signed the contract and endorsed the check. They are now calling stating that they made a mistake on the sales amount and want me to come in and re-sign the contracts reflecting a $3000 price increase and get a new draft check with the updated amout. Is this something that they can do or are they leagally bound at this point to the orginal signed contract? By the way signed the contact this morning and they called this afternoon, not sure if there is some time limit that the dealer has to recend a contract. Any help would be appreciated.
Thanks,
Billy
No, the dealer cannot force you to pay more UNLESS you either knew or should have known that the amount the dealership had on the contract had been a mistake on the dealer’s part when you first signed the contract with the original price. I should note that there is a minority rule: In some jurisdictions, there’s a trend that the party who made a mistake can get out of it if the non-mistaken party hasn’t changed his position in reliance on the contract. But since you’d already secured a loan to finance the car before they called you back, I think any judge would consider this a “change in position in reliance on the contract.” So, I would refuse to pay any more money, because what you had agreed to earlier was a BINDING contract that the dealer must comply with.
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