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I'm a bit confused... you want to get out of what contract? The one where your friend makes payments for you?
Who has the title to the car?
So, the important thing to know here is that the title and the loan are two different things... one can be on the loan and not own the car - and vice versa.
I understand that the bank technically owns it - but is everything in your name?
And are you saying there's a separate contract where you sold her the car?
So technically if you have a separate contract where you sold her the car she can sue you for breach of contract.... I wish I could tell you otherwise...
Well, so, she can sue you for payments she made on the car...
And technically she can sue for specific performance - meaning transferring of the title of the car to her - if there's a contract that gives her ownership.
Sorry... please don't shoot the messenger...
Right, I understand... so the fact that the actual loan is your name wouldn't really impact the analysis I'm afraid, if there's this contract you entered into with her. Any attempts not to honor it can cause her to sue for breach of contract - and ask the court to enforce the terms of that contract.
I'm afraid that's not how a contract works... you can't just give the other person their money back and say 'we no longer have a contract'... She would technically still be able to go to court to enforce the terms of the contract. I'm sorry. Can I answer anything else for you?
The terms of whatever contract you signed with her.
Did the contract state that you were transferring ownership to her?
Or just that she would be making your payments WHILE she was driving your car?
Right so that's what I figured... so you'd be breaching the contract BY NOT allowing her to continue to pay it off until she takes ownership. Does that clarify?
She can sue for breach of contract - the value of the car, the payments she has made - or anything in between.
The only way the car would be 'gone' is if the car was destroyed (at which point she can ask for her money back). Otherwise she can seek specific performance... meaning the court requiring you to continue accepting payments and then transferring the car to her.
Can I answer anything else for you? Please let me know. I’m always happy to answer follow ups and I'd be happy to answer any other questions you have. Just please consider the fact that we have no control over the law. Also, if there's anything I'm misunderstanding about your question, please let me know. If you don’t need any additional information at this time, a “THANKS FOR THE INFO” will allow me to record that I’ve answered your question. It won’t close out the question or anything like that, so if you think of anything else I’ll be able to help you with that as well :-) Thank you.
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Here is what is going on in a situation such as you have described:
In summary, a situation such as the one you have described puts you in a terrible situation. What is your exit strategy given the above factors? Will the "buyer"(in quotes because they are basically renting a car in violation of a secured agreement) work with you?