Legal Question in Business Law in California

We were mislead and given a fraudulent presentation at a timeshare in Mexico. We signed and gave $4500 deposit based on their purchasing our two other timeshares. We signed on that basis only to discover that they did not purchase our timeshares but gave them to a Co. in AZ to put on multiple listing. We asked to cancel and even willing to lose our $4500, but they say we signed...to bad...continue to bill for remaineder of the $15 k. Do we have any options?


Asked on 11/08/09, 6:41 pm

2 Answers from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Two questions come immediately to mind. First, is the agreement to purchase your other two timeshares in writing, with the terms (e.g., price and a time for the deal to close) set forth with some clarity, or was this just saleman rhetoric? Second, what law applies to disputes? Is the contract to be enforced in California, Arizona, or maybe Mexico? Is there a mediation or arbitration clause?

There are also some side issues that may affect your rights, including whether your purchase was intended to be real or personal property - I think timeshares can be either - and whether the appropriate disclosures were made.

Whether you are going to get anywhere in negotiating, arbitrating or going to court with the sellers will probably depends upon the answers to some or all of the foregoing questions being favorable to you.

Whether just walking away from the contract is a safe thing to do would require reviewing it rather carefully to see what remedies the promoters have given themselves and whether they could actually carry them out, should they try.

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Answered on 11/13/09, 7:17 pm
Melvin C. Belli The Belli Law Firm

If the agreement to buy the other two time shares was part of your agreement to buy the new ones then you can sue them for breach of contract before they sue you. If it was not in writing then you will have a problem proving that but could still argue they committed fraud in inducting you to purchase the new timeshare by lying to you about buying the old one. So there are your two main choices. Then next question is does the agreement state where you have to sue them if so you must do it there. If it had an arbitration clause you may have to arbitrate but the courts are less inclined to enforce these than they used to be.

Hope that helps and good luck.

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Answered on 11/14/09, 1:09 am


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