The case at hand presents a dilemma to Nancy. She is trading in her old car and at the same time buying a new vehicle. Although they might have concluded the sale contract, it is important to note that the contract she signed talks of a different story than the one she is supposed to have signed. Upon realizing the weight of the mistake (maybe) made after the deal is sealed, the dealer decides to rescind the transaction. This is the original owner of the car that Nancy has just bought. The issue at hand is whether Nancy should return her new car, or she should accept the dealer’s rescission.
There are a number of rules that govern trade transactions in the United States. For this specific case, we can focus on the Unfair Trade Practices and Consumer Protection Law to assist resolve the matter. This law allows for any party involved, buyer/ seller, to make a rescission in case they note any violation of contract or if the transaction is not proceeding as per the law.
First, this law says that the rescission window expires on the midnight of the third day from the day the contract is sealed. In this case, the dealer cancels the contract in good time. The law also recognizes an oral rescission as a formal rescission. The dealer asks for a rescission the following day and gives a clear cancellation through a phone call. These are some of the rights the dealer has that form a good basis for his cancellation, including a false misrepresentation of a fact. (Thedictionary.com, N.d). This misrepresentation or mistake is the model of the car which is written as a 1999 model instead of 1998 in the contract.
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Despite the above provisions, the law states clearly that the other party can treat a rescission as an offer. This means that Nancy can accept or decline. It states further that if the contract is still executory to either party, an agreement to rescind by one party is enough to cancel the agreement. However, it also states that if the contract has already been finalized on one side, any agreement to cancel the contract that is made without any new considerations is void. This means that it is of no binding effect or legal force. Because Nancy probably does not want to return the new car, this might be her strong counter argument. Both the dealer and the sales manager were aware of the mistake. Despite this, they still negotiated and agreed to carry on with the contract. The law clearly states that an agreement to rescind without any new consideration is void. The dealer does not have a new consideration to table. High chances are that Nancy will end up keeping her new car.