Deposit return

I signed a sale agreement for a pre-owned car for loan approval. But I do not want to buy the car now. i deposited CAD1000. The dealer says they will forefeit CAD 1000 and will may charge more for their advertsing loss.


Asked 28 days ago in Mississauga, Ontario
Categories: Contracts

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Caryma Sa'd

Answer by Caryma Sa'd

VerifiedOntario lawyer

OMVIC (Ontario Motor Vehicle Industry Council) is Ontario's Vehicle Sales Regulator. If you signed a contract for sale, it is a legally binding agreement. If the dealer agrees to cancel the contract, they are entitled to retain all or part of the deposit and they may claim "liquidated damages." Liquidated damages are the costs the dealer might've already incurred when selling the vehicle to you such as advertising expenses and loss of profit from the cancellation.

The liquidated damages must be reasonable and provable. If you believe the damages the dealer is seeking are unreasonable, you can contact OMVIC's Complaints Team at 1-800-943-6002 x 5105 or email consumers@omvic.on.ca

Yours very truly,

CARYMA SA'D
Lawyer & Notary Public 

Posted 26 days ago

Please note that this is for informational purposes only and does not constitute legal advice to you. Legal advice pertaining to your particular situation can only be provided by a lawyer who has met with you to obtain all pertinent background information necessary to give you a formal legal opinion. For formal legal advice, hire a lawyer (many give a free first consultation). Contact Caryma Sa'd, or search the Lawyer Directory.

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