Legal Question in Consumer Law in Indiana

When is a contract binding?

I signed a retail installment/security agreement to buy a used car on 01/23/03. The van was to have a new muffler installed and be delivered the same day. It has not been delivered yet-it is now in a shop to get a new starter. Am I legally bound to this contract even though the vehicle has not beeen delivered?


Asked on 1/27/03, 4:24 pm

1 Answer from Attorneys
Daniel Hawes Hawes & Associates

Re: When is a contract binding?

Indiana may have a special law on the subject, as to which I am unaware. But as a general matter, a contract is binding when there has been an offer, an acceptance of the offer, and an exchange of consideration (which can be a promise in exchange for another promise: i.e., I promise to pay money if you promise to sell me a car).

So it's possible. Read the documents you signed carefully and see if that answers your question.

If you've decided to back out on the deal entirely, you may have a statutory right of rescission that you can exercise in a particular, well defined way. I suggest you (1) read your contract and (2) consult a local attorney.

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Answered on 1/28/03, 7:43 am


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