TX contract law, seller's right to terminate purchase and sale agreement for truck

Probably not. I don't know whether you owe the sales tax, my instinct is that you probably do. But I would not assume without proof that you owe it to the dealer. I think that if you owe it, you owe it to the state. I'm guessing about Texas law, but I suspect the law requires the dealer to collect it at the time of sale, the dealer failed to collect it, the dealer now must pay the state, and after paying it to the state the dealer will have the right to collect it from you. But even if the dealer has a legal right to go after previous purchasers and collec the sale tax, you refusal to pay it to them is probably not a breach of the contract. I use the word "probably" because I have not seen the contract.

So where does that leave us? If my assumptions are correct, the dealer has the right to sue you for the money IF they have paid it to the state and they don't have the right to cancel your contract with the finance company no matter what. If they do interfere in any way with your contract with the finance company, you can sue them for that.

I suggest you find out what the law is concerning sales tax on trucks. If a truck doesn't qualify for the machinery exemption, pay the tax. Pay it to the state, not the dealer. Don't evade your sales tax and don't commit any other crime. One option is to tell the dealer that you will be paying the state, not them, and if they mess with your financing you will sue them. One option is to tell the dealer nothing.

This answer must not be relied on as legal advice for the reasons posted here: http://mcgyverdisclaimer.blogspot.com . And I am not your attorney.

David