Legal Question in Business Law in California

Breaches of contracts ware either "Material" or "Non-material" which means that if the breach destroys the integrity or purpose of the contract, it is considered a breach and the other party can sue for damages. As long asyou get things corrected, there should be no problem. Are you still behind? Get caught up and they should not consider the contract terminated. Also, they cannot keep all those payments without give you a reasonable refund.

I agree. The law is said to "abhor a forfeiture." No court would allow the lender to invalidate the contract because a single payment was late, unless perhaps the contract specifically says in big black type that a single late payment will result in a forfeiture, and that "time is of the essence of this agreement and every provision herein" or words to that effect. The lender may be entitled to a modest late charge (if the contract so provides) as liquidated damages, but egnerally speaking, that's it.

There is a motor vehicle finance law in California that gives borrowers substantial rights. Its popular name is "Rees-Levering Motor Vehicle Sales and Finance Act" which you can research on Google. It may or may not apply to your loan.