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Roger
Roger, Attorney
Category: Legal
Satisfied Customers: 26098
Experience:  Litigation Attorney
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My husband just bought a used car from a dealership. He traded

Resolved Question:

My husband just bought a used car from a dealership. He traded in a used car which we owed $8,000 on. The dealership agreed to give him $8,000 for his car and they agreed on a price of $28,000 for the new car. When the dealership drew up the contract they put the $8,000 trade-in value toward the price of the new car so my husband siged a contract for the car purchase in the amount of $20,000. He got a call from the dealership the next day saying that had messed up the contract and had to redo it. That shouldn't have put the $8,000 towards the price of the new car since they have to pay off our existing loan. My husband did sign the papers over to the dealership for his old car. Is the contract still valid even though the dealership made a mistake?
Submitted: 4 years ago.
Category: Legal
Expert:  Roger replied 4 years ago.

If the both parties knew that the sales price was $28,000 and that the $8,000 was to pay off the loan on the trade in - the paperwork contained a mutual mistake which can be corrected by the seller.

 

However, if your husband understood that the deal was as the contract states, he can claim that there was no mistake and that the contract is complete.

 

One issue is that the contract likely states that IF there is a mistake in the paperwork, he'll agree to re-sign the corrected documents. Thus, you need to look at that first.

 

If he doesn't agree to re-sign, he can expect a fight and will likely be sued. However, there's no guarantee that the dealership will win - however, a judge is not going to like it if the facts show that this was a simple mistake and he's trying to take advantage.

Roger, Attorney
Category: Legal
Satisfied Customers: 26098
Experience: Litigation Attorney
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