I was planning trading in my car & buying another.
I have signed both registration documents.(transfer of vehicles)
I was hoping to fund the purchase from the sale of shares, because of the fall in share prices i cannot afford to sell shares at this time.
I'm i legally obliged now to buy the car, i have not signed any bill of sale etc
Jim64 Sat 11/10/08 10:21
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You have signed no contract, no agreement or anything, but the seller has completed the registration documents as if the sale is going through, is that correct?
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The issue seems to be whether a contract has been concluded or not.
S.17 (1) of the Sale of Goods Act 1979 states that "where there is a contract for the sale of specific...goods, the property in them is transferred to the buyer at such time as the parties to the contract intend it to be transferred".
S17 (2) goes on to state that "for the purpose of ascertaining the intention of the parties regard shall be had to the terms of the contract, the conduct of the parties and the circumstances of the case.
In that context it seems to me that by completing both sets of registration documents, your conduct shows that you have entered into an agreement. What other evidence is there though? Is there anything that shows evidence of an agreed price?
My view is that property has passed and it may be that the Court would have to decide on any further matters such as what amount of money should change hands if either party 'forgot' what was verbally agreed. I may have a solution though.
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You could phone and explain the situation and try to finance the car on HP. If the seller agrees to this (and there is a good chance he/she may because finance gives extra profit) then ask for the paperwork to be sent out to you for you to sign. Do not under any circumstances sign on the sellers premises - make excuses. At this point the old contract is ripped up (verbally or otherwise) and a new one exists = 'Novation'! We now fall within the Consumer Credit Act as antecedent negotiations have taken place.
Next step: Don't sign!
Write to cancel the agreement within five days of receiving the credit agreement documentation - you have a cooling off period under the Consumer Credit Act. Send your cancellation letter using proof of postage/delivery.
Having taken these steps, you would now have every right to withdraw from any agreement to buy the new car - unless that new car has been ordered to your own individual specification e.g. a particular colour with a particular engine with extras.
In a nutshell you want to try and convert the existing contract into one that falls within the Consumer Credit Act. The CCA allows you a cooling off period without incurring any penalties for changing your mind.
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You don't have to sign any credit agreement for the proposed agreement to fall within the scope of the CCA - it falls within what is called antecedent negotiations.
If you sign any agreement on the premises of the seller you lose the right to a cooling off period.
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