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Can you cancel a new car contract in California because they changed the interest rate and you did not give them any money and never took possession?

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Wiki User
2011-09-12 14:27:42

A contract cannot be changed by one party without the agreement

of the other party in the contract. So if you signed a contract

showing one interest rate and the other party changed the interest

rate after you signed the contract, then you should be able to get

out of it. If you signed the contract with the changed interest

rate, you, in essence, were indicating the interest rate was

acceptable. In this case you may be stuck unless you can reach an

agreement with the general manager at the dealership. Below are the

requirements of a valid contract that might be of interest.Regards,

Carole

Here are the REQUIREMENTS OF A VALID CONTRACT

For a contract to be valid, both parties must give their assent.

They must act in such a way that the other people involved believe

their intention is to make a contract. Thus a person who is clearly

not sincere in saying that he or she accepts an offer usually is

not held to a contract by the courts.

On the other hand, a person who secretly has no intention of

making a contract but who acts in a manner that leads people to

believe he or she had, may be held to a contract. Legally, it is

the external appearance that determines whether one is held to a

contract

Consideration A contract results from a bargain. This implies

that each party to thecontract gives up something, or promises to,

in exchange for something given up or promised by the other party.

This is called consideration. In the example given above, the

consideration on one side is the promise to pay $1,000, and on the

other, the promise to deliver a car.

With rare exceptions, a promise by one party, without some form

ofconsideration being extended by the other party, does not result

in a contract or other enforceable obligation, regardless of the

sincerity of the promise. Although each party must extend

consideration to the other in order to form a contract, the value

of the consideration need not be equal.

Determining how good a bargain is becomes the responsibility of

theparties involved. Otherwise, the courts would be in the

impossibleposition of having to appraise the relative value of

millions of promises made every year

Competence For a contract to be enforceable it must be between

competent parties. A contract with a person who has been

adjudicated insane is likely to be declared void. A contract

involving a minor--in most states of the UnitedStates a minor is

now a person under 18--may be enforced or voided by the minor,

unless the contract is for necessities such as food, lodging, or

medical services, in which case he or she may be held responsible

for thereasonable value of what was purchased.

Persons suffering from a disability such as intoxication from

drugs or liquor, or insane persons not adjudicated insane, usually

may void a contract if the other party knows or should have known

of the disability and if the consideration received is

returnable

Legality The last requirement of a valid contract is that its

provisions be legal. If a purported contract requires an illegal

act, the result is a void contract. Parties to an illegal contract

have no standing in court. If one party receives money or property

under an illegal contract, the other maynot sue to recover what was

paid under the contract. Not only arecontracts requiring criminal

acts illegal, so are contracts requiringcommission of a TORT (a

breach of civil law such as misrepresentation or trespass) or those

in breach of public policy. Although public policy is difficult to

define, it includes some serious breaches of conventional morality

or ethics.

It is commonly assumed that an enforceable contract must be in

writing. This is usually untrue. Most oral contracts are

enforceable, but written contracts are easier to prove.

Some types of contracts must be in writing, for example,

contracts forthe purchase or sale of any interest in real property,

contracts to pay debts of others, and contracts that require more

than a year to perform. Contracts for the sale of personal

property--that is, movable property--asdistinguished from land, at

a price above a specified sum set by law must be in writing unless

payment or delivery has been made or unless the goods were

specially manufactured.

Although only a few types of contracts must be in writing, the

terms of a written contract ordinarily may not be contradicted in

court by oral testimony.


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