What justifies cancelling a contract?

Primarily, a contract should be a written instrument, as this can eliminate many of the “he said, she said” arguments, however, it is not a requirement. A written contract better clarifies all the terms that are agreed to, such as price, terms and description of property. California law requires that the contract have no blank spaces when signed, and that the consumer receive a copy of any contract after signing. When addressing consumer protection in the case of a contract, the most often-used example is automobile lease and purchase contracts, however, many of the same and similar laws apply to all contracts for the lease and/or purchase of consumer goods. The law allows for an automobile purchase or lease agreement to be cancelled if it is based on a mistake, fraud, concealment or significant non-disclosure. California law protects consumers against misrepresentations that are made in the course of negotiations for the lease or purchase of goods or services. The law also allows that the salesperson did not have to purposely misrepresent any information, only that the misrepresentation was made and is in fact not true is all that is required.

Some examples of misrepresentations, which would justify rescinding the sale, especially if more than one of them is present, may include the following: An inaccurate representation of the product, referring to it as new when it is used or has been reconditioned (i.e. a “new” vehicle with several hundred miles is probably not a “new” vehicle); any inaccurate representation that concerns the benefits of goods or services or the quality of the product, such as mechanical soundness of a used vehicle, limits of coverage in a service contract or the “best available” finance rate; Non-disclosure of required information, like the fact that a vehicle had been a “demonstrator” or was “totaled” because of body damage or flood, had a salvage title or suffered damage to the frame in an accident.

Call Smith and Garg today at 1.877.517.4275 or complete our contact form and let us assist you with your consumer defense needs.