Legal Question in Civil Litigation in Alabama

Re: contract law

Generally, the answer is no, the dealer cannot keep your down payment. BUT, a situation like this is VERY fact specific and depends a lot on what the contract between the two of you says (although other laws may apply). Usually, the contract will state how long the buyer has to rescind the purchase. If done within the proper amount of time, the seller should refund the money. The contract may allow a certain amount of time for the seller to "cure" the problem, i.e., make repairs. It may also be worth looking into whether the seller breached any warranties - sometimes the seller may be liable for more than just the down payment - AGAIN, it all depends on the specific facts. Read your contract and see if you can determine whether it addresses the things I've mentioned. It's difficult for me to address your question with anything more than generalities because as I said above, these situations are very dependent on the specific facts involved. If you can't figure it out after looking at your contract, you may want to contact an attorney. Good luck!