Stephenville, TX asked in Contracts for Texas

Q: I signed a contract where wrong information was stated. Is the contract valid?

Mileage on a vehicle was stated wrong. Does this void the warranty? It was a used car does this void the contract?

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1 Lawyer Answer
John Michael Frick
John Michael Frick
  • Frisco, TX
  • Licensed in Texas

A: First, you are very lucky you received a warranty when buying a used car. Most are sold as-is. Whether the erroneous mileage voids the warranty depends on the exact wording of the warranty itself. The only way to tell is by reading it.

Second, as far as the contract, if the mileage was a material term of the parties’ agreement and there was a material misstatement, it doesn’t necessarily “void” the contract but it does potentially give the Buyer the right to request rescission of the transaction.

It’s not as simple as just giving the car back to the Seller and returning the money to the Buyer. If the Buyer has driven the car, the Seller may be entitled to compensation for the use of the car. If the Buyer has prepaid insurance on the car which is not refundable or interest on a loan or for maintenance and repairs, the Buyer may be entitled to compensation for those additional expenditures.

A consultation with a lawyer who practices in the area of consumer law would help educate you on what you may be entitled to. Typically, a simple consultation should cost about $500.

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