Legal Question in Consumer Law in Oregon

I found a used fifth wheel trailer that my husband and I wanted to purchase. The dealer insisted that I sign an agreement that I would purchase. Although my husband and I are both on contract, they only had me sign. Now my husband may be losing his job, and the bank says they will not finance us if he is not working. We decided to not purchase the rv. We have done nothing with the dealership but sign that paper and leave a $200 deposit. We have not even taken in our current trailer as trade. The contract states "subject to credit approval", however, the dealership now says we are in breach of contract and wants to "take us to court" to fulfill the contract.

I am confused. If we are unable to get credit, and the contract was "subject" to credit approval - how can we be in breach of contract? Are they able to do this?


Asked on 5/27/10, 6:47 pm

1 Answer from Attorneys
Daniel Meek Daniel W. Meek

If the contract says it is subject to your credit being approved by a bank in order to give you a loan, then the dealer has nothing to complain about and certainly cannot force you to buy the trailer or pay for it. In fact, you should get your deposit back.

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Answered on 5/27/10, 10:56 pm


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