Milpitas, CA asked in Consumer Law and Contracts for California

Q: Can a Company request for Payback for incorrect/double payment after signing Mutual Release Agreement

Signed a Contract for a Vehicle Purchase - but was double charged for it , and requested refund of additional payment which was reimbursed after a long time.

In the meantime the Vehicle had some issues - which the company settled by making me sign a Mutual Release agreement - that absolves both parties of any wrongdoing and future/past claims

now the Company threatens legal action - since they had double refunded and want the money back, I still have unresolved issues with the car. Can they threaten to sue ?

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1 Lawyer Answer
Gerald Barry Dorfman
Gerald Barry Dorfman
  • Mill Valley, CA
  • Licensed in California

A: Like many contracts and releases, it really comes down to the specific wording of the document. They can always threaten to sue, or even file a lawsuit, but to understand whether their action is realistic you need an attorney to review the documents.

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