Legal Question in Consumer Law in California

Re: sales contracts

You probably cannot back out just yet.

They've OFFERED to change the terms of the contract. You may agree to the change if you so desire, or you may insist on "perfect tender." That is, you may insist on their delivering a fifth-wheel that exactly matches the terms of your current contract. If you don't agree to a change, but the dealership delivers a different fifth-wheel anyway, you may reject delivery and, again, insist on perfect performance of the contract. (CA Commercial Code section 2601).

However, if the dealership goes further by telling you that it cannot or will not adhere to the terms of your current contract, then you have to ask whether the change they propose will constitute a "substantial impairment" of the value of your contract. If the change they insist upon reduces the value of the contract "substantially," then you may treat the contract as breached right now - and cancel it. (CA Commercial Code section 2711). The danger here is that a judge will disagree with your interpretation of "substantial" and will find that your resultant cancellation was the first breach of contract.

Either of these rights could have been altered in the terms of the contract, which are frequently found on the purchase order(s). To have a reasonably sound answer, you should consult an attorney directly.

Alternatively, you can always OFFER to cancel the contract mutually. However, the dealership is free to reject your offer. If the value of the fifth-wheel is over $500 (surely it is), then the agreement to cancel the contract must be in writing and signed by the parties to be enforceable. (CA Commercial Code section 2209).

One last caveat: if your "contract" is not in writing (i.e., is oral), but is for an amount over $500, it is not enforceable. Judges disfavor this rule, so nearly any writing will do.

Good luck!