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What establishes a legal contract or agreement between (2) parties?

Asked over 2 years ago - Houston, TX

I purchased used car from a Dealer. Upon purchase the Dealers Buyers Guide Information Sheet for the vehicle stated a "service contract was available at an extra charge". I purchased the Protection Plan from the Dealer. This month discovered our warranty was not valid. We contacted the Dealer they informed me Nissan declined the warranty and a refund check was sent to our financial institution. We were never informed that the warranty was declined. I was never informed at the time of purchase that the warranty could be declined. The Protection Plan I purchased states "I agree that my Service Agreement is effective NOW". If you pay for a service does that not establish a legal transaction between (2) parties?

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Attorney answers (2)

Andrew Daniel Myers

Reputation Level 20

Answered over 2 years ago. Personal Injury Lawyer in North Andover, MA.

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Additional warranty plans by dealers are one of the biggest frauds by car dealers.

They offered the plan, you accepted and paid, or gave consideration. Therefore, there was a valid contract. I have handled such cases in the past and when faced with the reality of the law and a potential liability suit they nearly always back down.

You would have had to have been notified that the contract was conditional upon approval, which based upon what you stated in your question, you were not.

FInd an attorney in your jurisdiction to enforce your rights.

This answer is provided for informational purposes only. True legal advice can only be provided in an office consultation by an attorney licensed in your jurisdiction and with experience in the area of law in which your concern lies.

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Kevin L. Colbert

Reputation Level 13

Answered over 2 years ago. Lawsuit / Dispute Attorney in Houston, TX.

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Giving consideration for a service, here paying for an extended warranty, does constitute an enforceable contract. Based on your question, the contract is between you and the dealer.

Additionally, there may be a Texas Deceptive Trade Practices Act violation by the dealer.

I would be happy to consult with you.

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