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LegalKnowledge, Attorney
Category: Legal
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Experience:  10+ years handling Legal, Real Estate, Criminal Law, Family Law, Traffic matters.
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I signed a purchase agreement for my vehicle. I then decided

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I signed a purchase agreement for my vehicle. I then decided I didn't want to sell and the purchaser said this was a binding agreement and if i cancelled they would take me to court for 10% of the purchase price. I just did this yesterday. Do i have a certain amount of time that I could cancel with no penalties?
Hi! I will be the professional that will be helping you today. I look forward to providing you with information to help solve your problem.

Good morning. Who was this contract signed with? Is there language in the contract that states the remedies and damages available to either party, in the event of a breach?
Customer: replied 3 years ago.

Yes there was a clause in there. The contract was signed with Progressive Remarketing. So more or less I will have to pay 10% of what they are going to buy the car for to keep my car.

Thank you for the additional information. The three day "cooling off" which I believe you are referring to does not apply in a situation like this. Absent a clause or terms in the contract which you both voluntarily signed allowed either party to back out, it would be legally binding. The 10% which they are seeking to release you, is likely what they anticipate to be the possible profit that they would make on the car, if and when they re-sold it. The decision to back out and pay this is entirely up to you, since if you fail to sell the vehicle to them as agreed or pay the 10% penalty for their "damages", they could sue you and you would need to defend the lawsuit. In order to prevail, you would need to have a legal defense to raise which prevents them from recovering or excuses your failure to perform under the signed contract. If you really do not want to sell it, you can always make them a counter offer and pay less then the 10%, to reach a resolution and to avoid any problems or lawsuits.

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