Under California Law the consumer may cancel the contract to purchase or lease of a new or used vehicle for numerous reasons. Basically, California consumers are allowed to cancel an automobile purchase or lease agreement if it is based upon dealer fraud, mistake, or significant non-disclosure or concealment. The basic concept is that there must be a “meeting of the minds” in order for a contract to be valid.
A contract that is put in writing tends to eliminate significant “he said-she said” arguments over what exactly was agreed to, since the significant terms of the contract are usually contained in the writing. Pursuant to California law the contract should have no blank spaces when signed, and that the consumer receives a copy of any contract or document regarding the vehicle after signing.
California law also provides consumers with strong protections against misrepresentations, which may happen during the negotiations for the purchase or lease of vehicles. The consumer is not required to proof that the salesperson intended to make a misrepresentation. The fact that the misrepresentation was made during the negotiations or sales is all that is required.
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