Dealer Telling Me I Need to Cancel a Contract I Haven't Signed

rickyb on 05/02/2022 - 19:43
Last edited 05/02/2022 - 19:47

Spoke to a car dealer over the phone, said I was interested in the car and I'd like to buy after they send over the details and I confirm. They asked for my email and driver's license picture and said congrats. They took this, wrote up a contract and sent it over, as well as asking for a deposit.

I told them after reviewing the details, I didn't want the car as it didn't suit. They told me I'd have to contact them when they're back in to being the process to cancel the contract.

I didn't sign a contract or send a deposit. What they're saying doesn't hold true, right? Any tips would be greatly appreciated especially if they tell me otherwise. I feel like they're trying to get the $250 / 1% off cooling period out of me but I didn't sign?

Automotive

Comments

  • life is suffering on 05/02/2022 - 19:56
    +14

    Chill OP you are safe. This is not how it works

    Just also you confirming - you approved the buy and then they sent the contract and then you changed mind?

    • rickyb on 05/02/2022 - 20:00

      Yes. I said I wanted it, but wanted to read contract first before signing and sending deposit. After reading, I said i didn’t want it. Is there anything I can point to to tell them they are incorrect?

      • life is suffering on 05/02/2022 - 20:01

        What was the reason OP you said no? Just curious. Also what state ?

        • rickyb on 05/02/2022 - 20:45
          +3

          NSW. Just after review we do not want this car.

          • thestig on 06/02/2022 - 08:28

            @rickyb: Out of curiosity, was it some issue with the contract that made you change your mind?

      • pegaxs on 05/02/2022 - 20:02
        +5

        Just tell them you don't agree to some clause on the contract, pick any of them and that is why you cannot sign it.

        If the contract is not signed and no deposit is taken, there is bupkis they can do about it.

        • rickyb on 05/02/2022 - 20:44

          Should i formally say this in an email? I said via sms after review we no longer want this

          • pegaxs on 05/02/2022 - 20:53
            +5

            @rickyb: Answered below

            TL;DR: Do not send them anything more than a phone call to say "Not signing, sorry."

  • HairyChickens on 05/02/2022 - 19:57
    +7

    Can't you just ghost them lol

    You didn't sign the contract so you should be fine? Unless I'm missing something.

    • life is suffering on 05/02/2022 - 19:58

      What I thought.. maybe they thought OP is an immigrant

    • Hirolol on 06/02/2022 - 16:04
      +1

      exactly this.
      if you didnt sign anything and didnt pay a deposit they cant do anything.
      just block their number and dont reply to emails.
      move on with life lol

    • life is suffering on 05/02/2022 - 20:00

      Where does it say it doesn't have to signed?

      • BHR on 05/02/2022 - 20:04

        Stellard Pty Ltd v North Queensland Fuel Pty Ltd

        • life is suffering on 05/02/2022 - 20:05

          But that is a different service

          • BHR on 05/02/2022 - 20:08
            +1

            @life is suffering: Electronic Transactions (Queensland) Act 2001, s14

            Turns out this guy is in NSW though, so…

            Electronic Transactions Act 2000, s9.

            He was identified by scanned drivers license.

            • rickyb on 05/02/2022 - 20:16

              @BHR: What does this mean for me?

              • BHR on 05/02/2022 - 20:24
                -1

                @rickyb: Not sure what was said in your previous emails, or why you decided to send your license.

                A signature is not required for a contract. A deposit is also not required.

                “I'd like to buy after they send over the details and I confirm. They asked for my email and driver's license picture and said congrats.“ rings enough alarm bells for me that you may have ticked the boxes of offer, consideration and acceptance.

                “ They took this, wrote up a contract and sent it over, as well as asking for a deposit. I told them after reviewing the details, I didn't want the car as it didn't suit.” backflips and makes it look like acceptance did not happen.

                So I can safely say, I don’t know exactly where you now sit, because I don’t know the full details.

                With limited information I wouldn’t be paying a cent, and they’re unlikely to want you to.. they want to sell you a car at the end of the day, even if it isn’t this one.

              • pegaxs on 05/02/2022 - 20:27
                +10

                @rickyb: Nothing. BHR is talking out their arse.

                They would need to prove that there was acceptance of the contract via "evidence", ie: if you sent them a deposit or you gave them communication to go ahead and make some alteration/addition to the vehicle (ie: you said/wrote/emailed "sure, fit a sunroof" and they cut the hole and you said/wrote/emailed "yep, there is fine, go ahead")

                Your "driver's license" is not "evidence" nor is sending them a copy of it considered "acceptance of a contract" especially if they or you said "and send me a copy of the contract to read and I'll sign it after I have read over it."

        • spal on 06/02/2022 - 08:58
          +1

          Essential element of a contract, consideration was not paid. Also, even for verbal contract willingness of both parties to be bound by the terms of the contract are required, which again is not the case.
          I am 100% ignoring them. Way this is being presented, looks like the dealer may be in breach of consumer protection laws. Definitely worth reporting them to state fair trading (consumer affairs in Victoria) unconscionable conduct.

    • pegaxs on 05/02/2022 - 20:08
      +5

      A signature is not required for a contract.

      LOL. Ok champ. If that was the case, the courts would be filled with people who said they wanted a car and then changed their minds.

      If a written contract is offered and you dont sign it because of one of the conditions on the contract, there is no court in this country that would hold you to an unsigned written car sales contract.

      More people should do what OP did, but so many people just sign a contract without so much as flipping it over and reading the back of it and then come to OzBargain and complain when the contract they signed turns pear shaped and they didn't read the T&C's and lose a big chunk of their deposit or the car gets rolled back delivery by 3 months and the price gets jacked 8% prior to settlement.

      • BHR on 05/02/2022 - 20:12
        -1

        Didn’t sign to buy and subsequently sell previous house. The world has moved on from last century :)

        The real question here is which components of offer, consideration and acceptance actually happened. This is not clear from the original post and posted from the point of view of op.

        What the op did do is send a copy of drivers license which meets identification requirements of a contract… signature not required.

        • pegaxs on 05/02/2022 - 20:32
          +2

          The world has moved on from last century

          Yeah, nah. Not when it comes to car sales contracts it hasn't.

          Sending a copy of your ID is not sufficient evidence on its own to seal a contract. If there is a paper contract to be read that contains terms and conditions, both parties must agree to these T&C's.

          OP invoked their right to terminate the contract based on something in the contract that they did not agree with.

          Welcome to the 1700's, and I can assure you, this is the way car sales contracts will be handled for quite a few more years to come yet.

          • rickyb on 05/02/2022 - 20:43

            @pegaxs: Should i formally write this to the email they sent with contract or ignore and just leave it as an sms to them?

            • pegaxs on 05/02/2022 - 20:50
              +3

              @rickyb: You should at least call them and speak to someone in a position to listen (not the front desk admin girl) and tell them the reason why you do not wish to progress with the contract. Tell them that you do not agree with the T&C's and therefore cannot sign off that you agree with the contract when you don't.

              Be prepared for questions or manipulation or asking what they could change or for a more detailed explanation of what part of the contract you didn't like. Sometimes they can amend a contract to suit you to the conditions you would agree to. So if you still want the car and just dont like the contract, get it amended to what is suitable for you.

              If you just got cold feet, stop wasting their time and just tell them "I don't agree with the contract of sale and I will not be signing it" then politely thank them for their time and find another car sales person to annoy.

              • megaalc on 05/02/2022 - 20:57
                +2

                @pegaxs: "and find another car sales person to annoy." - "what is your best price?"

        • larndis on 06/02/2022 - 08:04
          +3

          @BHR I find it exceedingly unlikely you didn't sign a contract to buy or sell a house - this certainly isn't how it's done in NSW and ACT! How were the conditions of sale (price, settlement date, etc) agreed if you didn't sign a contract? Did you get a home loan based on a verbal agreement?

          • BHR on 06/02/2022 - 17:47
            -1

            @larndis: Queensland. Electronically identified with drivers license. No squiggle.

        • Nickels n Dimes on 06/02/2022 - 17:34

          There are such things as verbal contracts , which can be done over the phone, but the merchant must identify the buyer and notify you that they will record the whole thing. This is not normal for used car sharks, but banking/credit businesses use it routinely now.

    • morse on 06/02/2022 - 06:42
      +1

      verbal agreement can be enforced

      Whilst this is true in some cases (minority) in practical terms the seller would have to prove the contract was agreed to. In this case OP had a verbal clause ‘if they were happy with the terms in the written contract’. OP wasn’t happy with the terms on viewing it, so the contract was never made either verbally or in writing.

      I’m not sure why you sent your drivers license

      A lot of places ask for this or won’t send you a contract to review. It’s a dodgy practice but it can be very hard to proceed if you don’t go along. I’ve had to be pretty firm with car dealerships and others in these circumstances and they do put the pressure on. Businesses have lost sales from me for such conduct, but not everyone has the time or the assertiveness for this. Also if there’s a test drive done it is reasonable to provide license details.

    • [Deactivated] on 07/02/2022 - 07:48

      Consideration and Acceptance has to be both sides. The dealer can make the offer, OP can consider and accept, then it is up to the dealer to consider and accept. It’s a bit like the good guys cancelling orders made online through pricing errors. The offer a product, ozbrodens consider and accept, but it then goes back to the retailer to consider and accept the payment for the article. Otherwise we would all have 80” 8K tvs for $1200.

    • rickyb on 05/02/2022 - 20:03

      This is NSW

  • dizzle on 05/02/2022 - 20:04
    +3

    I feel like they're trying to get the $250 / 1% off cooling period out of me but I didn't sign?

    More likely they just want you to cancel it verbally so that they can talk you back into purchasing. I would assume the contract was sent from an admin person in the office, and they want you to talk to the salesperson who will then do the job of convincing you or finding another car for you to buy

    • rickyb on 05/02/2022 - 20:15

      The sales person was the one that told me this.

      • oscargamer on 05/02/2022 - 20:54
        +2

        Typical sales scum

    • Nickels n Dimes on 06/02/2022 - 17:36

      This is it, precisely. The best car salesperson is an expert in face to face negotiation and manipulation, especiallyif you are seated in their office. They don't have the same powers over the phone, so use every trick to get you back there.

  • AndyC1 on 05/02/2022 - 20:08

    Unfortunately now days with covid I have seen allot of contracts and agreement being for a better word "agreed" to by an email being received with words in the email to that you agree to what ever was the previous email.

    With you situation do they have any money or credit or bank details? If so you are screwed an need to send an email you are not proceeding with the purchase in the cooling off period and that is it. If you never gave them any bank /cc info then send tan email saying the as per the previous correspondence and phone calls etc that the contact is null an void.

  • Brick Tamland on 05/02/2022 - 20:14
    +6

    No deposit no worries. Contract is nothing without signature or deposit

    • AndyC1 on 05/02/2022 - 22:41
      -4

      So you break agreements all the time them?

      • Brick Tamland on 06/02/2022 - 09:04

        What do you do on your weekends?

      • GaryQ on 07/02/2022 - 19:59

        if I had a dollar for everyone property my fiance said she'd make an offer on - I'd had have $13

  • TurboTortoise on 05/02/2022 - 20:51
    +1

    Wouldn't lose any sleep. I don't think the OP ever accepted the offer. As he said he would confirm after receiving details, The offer includes details and the contract and even if you argue that providing a drivers licence constitutes acceptance (unlikely), he hadn't received the offer yet and therefore never accepted.

  • oscargamer on 05/02/2022 - 20:57
    +10

    For contract there needs to be…
    Offer
    Consideration
    Intention
    Acceptance

    See this
    https://legalvision.com.au/contract-basics/

    You have not entered into a contract

    Just ignore them

    DO NOT keep talking/emailing them

  • garetz on 06/02/2022 - 07:11
    +1

    You didn't sign anything, so there is nothing to cancel.

  • Hithere on 06/02/2022 - 07:47

    They asked for my email and driver's license picture

    They do the same thing when you test drive a car, doesn't mean you've got to buy it.

    I didn't sign a contract or send a deposit.

    Ignore them. You didn't sign a contract or agree to buy the car. If they continue to harass you complain to the Dealer Principal.

    It's not like they will have a large number of cars that they can't sell in stock.

  • peterlong1952 on 06/02/2022 - 07:54

    There should be a 5 day cooling off period on any car contract so you should be able to back out of the deal.

  • jzam on 06/02/2022 - 08:23

    You have nothing to worry about if you didn't sign the contract.
    The salesperson is just either
    A. Trying to scare/convince you into just going ahead with the deal
    B. Just wasting your time and playing a game with you, as you wasted their time (in their mind)

    Although you are quite vague with your description of the dealings with the salesperson and what was said.

    Did they ever ask if you'd like to buy or proceed with the purchase?
    Surely you had some sort of idea why you were sending over a photo of your drivers license?

    Interesting he sent over a contract without a deposit first.ive been in the industry 10+ years so I do understand their frustration but it's just part of the job..
    He could have calmly asked what's your objection or what's holding you back and tried to overcome any issue or question you had
    You may have been more likely to proceed with the deal in this case..

    I'd say for next time though, before making a verbal gentlemans agreement over the phone, make sure you are happy with the deal and car offered and only agree after all conversations on your end have been made.
    Not from a legal standpoint but just out of courtesy to salespeople

    He may have lost another client that was on that same car to another dealer?
    Also management can be rough on salespeople when they "lose" a deal for no apparent reason. Especially after its been written up and counted as a deal

    All in all you have absolutely zero to worry about.
    They will forget about it in a few days as they will have new problems to worry about

  • OzHunterNSW on 06/02/2022 - 09:29
    +1

    Ignore it …. simply ignore it.
    If they keep contacting… spam their email… block their number.

    YOU owe them NOTHING! Not even your time.

  • alxr0101 on 06/02/2022 - 11:38

    There is no binding contract, verbal or otherwise.

    Notwithstanding that, YOU need to correct their assertion in writing (txt, email, letter..).

    Say minimal…just refute their choice of words about a "contract" and request they act professionally and NOT continue to harass and intimidate you.

    That is all.

    You could ignore them but best you refute their belief that you have ANY obligation, financial or otherwise, and make it abundantly clear that is final for you.

    Based on what you have said, they have no grounds to commence legal action on this.

    Any pending purchase was subject to conditions you stated. There was an intent to purchase but no commitment…and certainly nothing signed for!

  • MrBear on 06/02/2022 - 17:48

    Put it back on them when you call them back.

    Say this to them: "By answering this call, providing your name and agreeing to speak with me, you are now signed up to 12 months of <insert MLM>. You'll be invoiced on the first of the month and goods should arrive shortly after, pending worldwide supply chain issues."

  • [Deactivated] on 07/02/2022 - 07:51

    Just tell them no it’s not for me and walk away. Are they really going to chase you for $1000 through the courts and put a black mark on their reputation with you and everyone you speak to? I hope you don’t consider this dealer for any future purchase if this is how they treat an enquiry about a $15K+ purchase.

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