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Can a car dealer keep your deposit without a contract?

Customer Question
Can a car dealer keep your deposit without a contract?
Submitted: 1 year ago.Category: Legal
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Answered in 12 minutes by:
5/3/2016
Lawyer: socrateaser, Lawyer replied 1 year ago
socrateaser
socrateaser, Lawyer
Category: Legal
Satisfied Customers: 39,370
Experience: Retired (mostly)
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Hello, The general rule is that a deposit is refundable, unless otherwise stated in writing, or where the person or business receiving the deposit has "relied to their detriment" on the depositing party's promise to purchase the ordered item. Example: 1. Prospective buyer orders a vehicle from the manufacturer. Dealer takes the order, and contacts the manufacturer to allocate a vehicle to the dealer. Buyer changes his/her mind, tells the dealer. Dealer contacts the manufacturer, and is told, "it's too late to cancel." Buyer can't recover the deposit, because the dealer is stuck with the car. 2. Same facts, except that manufacturer cancels the order. Buyer is entitled to refund, because dealer has suffered no detriment/injury. There are lots of other possible scenarios, but the key factor is whether or not the dealer suffers an economic loss due to the buyer's promise to purchase. I hope I've answered your question. Please let me know if you require further clarification. And, please provide a positive feedback rating for my answer (click 3, 4 or 5 stars) -- otherwise, I receive nothing for my efforts in your behalf.Thanks again for using Justanswer!
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Lawyer: socrateaser, Lawyer replied 1 year ago
Hello again,I see that you have reviewed my answer, but that you have not provided a rating. Do you need any further clarification concerning my answer, or is everything satisfactory?If you need further clarification, concerning this matter, please feel free to ask. If not, I would greatly appreciate a positive feedback rating for my answer (click 3, 4 or 5 stars) – otherwise, I receive nothing for my efforts in your behalf.Thanks again for using Justanswer!
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socrateaser
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Category: Legal
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The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

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