Is signed car order form legally binding?

steviecuk

Hi,

I saw a car online that I liked the look of and as it was miles away paid a fee to reserve it and have it moved to a branch closer.

Once it had been moved I’d had a look round it and had a test drive, i was happy to proceed with the sale. The salesman got the paperwork and the price was lower than was on the original ad. I questioned this twice and he confirmed that it was correct and there was 'no negotiation on price' The order form etc. was all signed by both him and me. I sorted finance when I got home, transferred the funds, got insurance etc. with an agreement to pick up the car today.

However when I went to pick the car up they have refused to hand it over as they have said that the price was wrong and I still owed the difference. They hadn’t called or anything about this and the first I knew about it was when I turned up to collect. They were very aggressive and when I mentioned that the order was a legally binding document (which it says it is on it!) the manager said he would stand up in court and it wouldn’t be successful as they are allowed to make a mistake! When I asked who I could raise a complaint to he told me it wasn’t worth it as it would only go back to him! They offered a refund but I’ve refused for now as i want to see where I stand first.

I’ve now raised an official complaint which is going above the branchmanager, but wondered how I stood legally? Are they legally bound to provide the car at the price they have agreed.

Thanks in advance!

Steve.

waamo

They have the right to correct errors. Where a mistake occurs like this then the contract is void.

Aylesbury_Duck

steviecuk wrote: »

Hi,

I saw a car online that I liked the look of and as it was miles away paid a fee to reserve it and have it moved to a branch closer.

Once it had been moved I’d had a look round it and had a test drive, i was happy to proceed with the sale. The salesman got the paperwork and the price was lower than was on the original ad. I questioned this twice and he confirmed that it was correct and there was 'no negotiation on price' The order form etc. was all signed by both him and me. I sorted finance when I got home, transferred the funds, got insurance etc. with an agreement to pick up the car today.

However when I went to pick the car up they have refused to hand it over as they have said that the price was wrong and I still owed the difference. They hadn’t called or anything about this and the first I knew about it was when I turned up to collect. They were very aggressive and when I mentioned that the order was a legally binding document (which it says it is on it!) the manager said he would stand up in court and it wouldn’t be successful as they are allowed to make a mistake! When I asked who I could raise a complaint to he told me it wasn’t worth it as it would only go back to him! They offered a refund but I’ve refused for now as i want to see where I stand first.

I’ve now raised an official complaint which is going above the branchmanager, but wondered how I stood legally? Are they legally bound to provide the car at the price they have agreed.

Thanks in advance!

Steve.

That bit's not really true though, is it. You knew there was an error, either in the original pricing or the new price.

They're allowed to correct their mistake as you are allowed to walk away no worse off than you were in the first place. It wouldn't have been a great basis on which to have a relationship with them should you have needed help in future had you forced them to sell it to you.

Just out of interest, what were the originally advertised and then new prices? And would you be banging their door down for a refund if you had bought it and discovered they were advertising it the same amount cheaper the week before you bought it?

DoaM

Unless it was a clear and obvious error (for which knowing the two values is important) they don't have an automatic right to cancel the contract. After all the seller's agent (salesman) was made aware of the discrepancy and proceeded anyway.

All IMHO, IANAL tc.

What sort of garage is it? Manufacturer's franchised dealer? If yes then complain to the manufacturer?

unholyangel

If it was an obvious error then the contract would be void ab initio (was never valid at any time) but a less obvious error not so.

While you could take the argument it was obvious if OP questioned it, you could also take the argument that it was not obvious because it was confirmed to be correct after having it specifically highlighted and brought to their attention.

If its not an obvious mistake and their contract says its a legally binding document.....they can't then allow themselves the discretionary ability to dissolve the contract without liability as that as the effect of making the contract only binding on 1 party which upsets the legal balance.


You say you sorted finance when you got home. Did any of this involve a credit card (or a finance agreement arranged by the dealer - i presume no to the latter given your wording but including just in case)? If so you could start a section 75 claim with the credit provider - they're jointly liable for performance of the contract. If you have a claim against the trader you have exactly the same claim against the credit company.

DoaM

unholyangel wrote: »

If so you could start a section 75 claim with the credit provider - they're jointly liable for performance of the contract. If you have a claim against the trader you have exactly the same claim against the credit company.

Not sure how a S75 claim will make a credit card company give the OP the car mind.

NBLondon

Aylesbury_Duck wrote: »

That bit's not really true though, is it. You knew there was an error, either in the original pricing or the new price.

As already pointed out... the OP raised it with the salesperson who confirmed it. So the seller had the opportunity to correct and failed to do so - I'd say that makes it a valid contract where the actual price was negotiated and agreed.

So the OP can push the issue. Or take the refund and then possibly go to Small Claims for the extra expense incurred in the process.

I caught a Ford dealer out once. I picked a car from their stock, agreed the paperwork and price and signed it. Totally by accident, I then asked the salesperson what a certain code meant and she realised that the car we'd agreed on had an uprated Info/Entertainment Pack that she hadn't priced in and said it would be another £900. I pointed out that we had a signed contract and gave them the choice of honouring the price or putting it in the shredder...
She conferred with the management and I got the deal - possibly at the expense of her commission.

waamo

NBLondon wrote: »

As already pointed out... the OP raised it with the salesperson who confirmed it. So the seller had the opportunity to correct and failed to do so - I'd say that makes it a valid contract where the actual price was negotiated and agreed.

In principle I would agree however there is the old adage that what a salesman tells you verbally isn't worth the paper it's written on.

If the op really wants the car I agree he should push for something though.

robatwork

Obvious pricing error (eg. selling a 20k car for 10k)?
Or much closer (20k car for 18k)?

unholyangel

DoaM wrote: »

Not sure how a S75 claim will make a credit card company give the OP the car mind.

No but it does make them jointly liable for the potential breach of contract and costs nothing/is at no risk to the OP.

Method in my madness