Legal Question in Consumer Law in Virginia

I did not understand the legal contract I signed.

I settled on a car that I was intrested in buying but I told the dealer that a $300 a month payment would be the highest payment I would make with reasonable financing. My credit history is not very good so they had trouble finding a bank to finance me. They finaly found a ''second chance'' bank that would take me for $320 a month payments with very high interest. The finance manager agreed that this was high and told me that I would have an excellent chance of financing with my Credit Union, and if I couldn't then she would find someone to finance me. She then had me sign a series of paperwork of which she discribed as a promise to bring the car back. I did not read the paper work (my fault) instead I took the word of the finance managers description of what i signed. During the time that I had the car I ran the VIN number and discovered that the car had been a previous rental car for a major renal company as well as a few more scraches. I returned to the dealership three days later to tell them I decided not to purchase the car and was told to bad and that I had signed legal documents agreeing to purchase the car and there was nothing I could do about it and they woud take me to court if I refuse.


Asked on 11/28/00, 11:22 am

2 Answers from Attorneys
Robert Smallenberg Robert H. Smallenberg, P.C.

Re: I did not understand the legal contract I signed.

Your scenario sounds similar to a problem a client of mine had with a dealership in Woodbridge, Va. Ultimately, we were able to get the client out of the contract. However, getting out of the contract was on another basis as the finance manger denied the representations he made to my client.

Generally, you have a duty to read any contract before you sign it. However, an exception exists where you were misled by the other party such as in your situation. Such fraud should serve as a basis to rescind the contract. However, past experience tells me that you should not count on the finance manager admitting to his representations.

I advise you to consult with an attorney regarding the particular facts of your matter.

Robert H. Smallenberg, Esquire

(804) 788-1956

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Answered on 11/29/00, 10:38 pm
Daniel Hawes Hawes & Associates

Re: I did not understand the legal contract I signed.

First, not understanding the contract you sign is your problem. You have an absolute right to have the contract reviewed by an attorney, and you have a right not to sign something you don't understand. Remember that the only (ONLY!!!) reason anyone ever wants you to sign anything is to generate evidence that can be used against you later. Don't sign anything unless it's in your interests to do so.

Secondly, it is your fault that you failed to read the documents. Sorry.

Third, they're probably right under the contract, you bought the car and you have to pay for it, regardless of what you choose to do with the car.

Now, the saving grace: If they solicited business from you at any place other than their usual place of business, the Home Solicitation Sales Act applies, and you get three days to cancel the deal for any reason or no reason. Further, any misrepresentation (regardless of what it says in the contract), deceit, fraud, or other statement that was designed to cover up the true history of the car in response to your direct questions is probably a violation of the Virginia Consumer Protection Act.

When they sue you, file a counterclaim.

It amazes me that people sign contracts obligating themselves to payments of thousands of dollars for what could well be junk, and they won't pay a lawyer thirty or forty dollars to review the contract documents before they sign.

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Answered on 12/07/00, 7:19 am


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