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Answered 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


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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