Recently a woman asked my advice about a new car that she ordered in October 2022 with an estimated delivery date of 28 June 2023. On 28 July 2023 she received an e-mail from the dealer informing her that her car had arrived and would be available to collect on 1 August 2023. The only problem was that she and her husband no longer wanted the car.
According to the contract to purchase the car, the customer was required to take delivery of it within 7 days of the dealer notifying the customer that the car was available. However, it further stated that if the dealer had not delivered the car within 30 days of the estimated delivery date, the customer had the right by notice in writing to rescind the contract.
As the proposed delivery date was 1 August 2023 (more than 30 days after the estimated delivery date of 28 June 2023) the client was entitled to rescind the contract which she did in writing on 29 July 2023. An open and shut case. But not so fast. As always, when you dig a little deeper…
Before the client attempted to rescind the contract for late delivery she sent the dealer an e-mail confirming that she had told her finance broker to finalise the finance for the car and asked if she could pick it up instead on 2 August 2023. It was her husband who later convinced her to change her mind and give the notice rescinding the contract.
In the circumstances, it would be strongly arguable by the dealer that even though the client had the right to rescind, she instead affirmed the contract by her e-mail and lost her right to rescind which could result in a lengthy and costly legal dispute. She decided to buy the car!
As I always say, it is always better to seek legal advice first before deciding on any action that can be to your legal detriment.
August 2023