What are the Remedies for Breach of Warranty of Title in a Car Sale?

Full question:

Are there any legal actions that can be taken against a co owner of a car if they sell the car without the signature of both owners?

  • Category: Contracts
  • Date:
  • State: Virginia

Answer:

The answer will depend on all the facts involved. For example, there may be a fraud claim. Fraud involves a knowingly made misrespresentation that is intended to cause another to rely and act on it to their harm. In order to prove a fraud claim, it must be shown that the defendant had an intent to deceive. If deception was used to induce another to rely on a promise and such reliance caused harm, it is possible to recover damages. Fraud may be made by an omission or purposeful failure to state material facts, which nondisclosure makes other statements misleading. It may be possible to rescind a contract for fraud, incapacity, duress, undue influence, material breach in performance of a promise, or mistake, and other fault-based grounds. Material breach is a contract law term which refers to a failure of performance under the contract which is significant enough to give the aggrieved party the right to sue for breach of contract.

The buyer may also have a breach of warranty claim based on warranty of title. Every contract implies a warranty by the seller that the title is good. If a car dealer was involved, a deceptive trade practice claim may be made. The co-owner of the car may make a claim for the value of their interest in the car, unless the car was of such a unique nature that money won't be able to replace the vehicle, in which case the co-owner may seek its return.

Please see:

http://caselaw.lp.findlaw.com/scripts/getcase.pl?court=ok&vol=/appeals/1987/&invol=1987okcivapp78

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

Generally, a car cannot be sold with only one owner present if it is jointly owned. Both owners must consent and sign the title transfer. If one owner sells the car without the other’s consent, the sale may be deemed invalid, and the non-consenting owner may pursue legal action for recovery of their share of the vehicle.

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