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?
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,
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
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
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
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
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.