Legal Risks and Prevention in Car Sale Contracts
In the process of car transactions, both buyers and sellers should focus on the completeness of contract terms and legal risks to avoid disputes caused by information asymmetry or imprecise contracts. Below are common legal issues in car sale contracts and measures to prevent them.
1. Agreement for High Configuration, Delivery of Low Configuration
In April 2019, a car dealership sold a new energy vehicle to Zhang for 138,300 yuan. The promotional material for the car indicated a driving range of 501 kilometers. However, after taking delivery, Zhang found that the actual driving range recorded on the vehicle's certificate was 476 kilometers. There was a price difference of 4,000 yuan between the two versions. Zhang sued the dealership, requesting that they replace the vehicle with one having a 501 km range and compensate for the price difference.
The court ruled that Zhang had contracted for a vehicle with a 501 km driving range, but the dealership delivered a lower-configured vehicle with a 476 km range. For electric vehicles, driving range is a key factor in assessing the vehicle's value. The dealership failed to inform Zhang and delivered a vehicle with lower specifications than agreed, violating the contract. The court determined that Zhang could either replace the vehicle or receive compensation for the price difference. Given that the vehicle had been used for a while, the court awarded Zhang compensation of 4,000 yuan.
Case Analysis:
Misleading Advertising: According to Article 16 of the Consumer Protection Law, businesses must fulfill obligations according to the agreement with consumers, but their agreements must not violate legal regulations. Article 20 specifies that businesses must provide true and complete information about products or services. In practice, businesses often advertise product features that are not included in the contract or fulfilled during performance. Even if such commitments are not written in the contract, if they are specific and clear enough to be deemed an agreement, they should be considered part of the contract.
Clear and Precise Contract Terms: Car purchase contracts are important for consumers to assert their rights. Many consumers lack sufficient expertise and legal awareness to accurately interpret contract terms, leading to important details being omitted. For example, a second-hand car contract might state that the car is not an "accident vehicle," but the buyer and seller may have different understandings of what constitutes an accident vehicle. The contract should clearly define such terms to prevent disputes.
2. Unknown Vehicle Source, Unclear Ownership
In June 2016, Jia wanted to buy a second-hand car, paying a 5,000 yuan deposit to Wei, who then transferred 3,000 yuan to Wu. The next day, Jia paid 229,000 yuan to Wei, who transferred 222,000 yuan to Song on Wu's instructions. After completing the payment, Jia took possession of the car, and Wei provided Jia with a copy of Wu's ID and a "Transfer Certificate" from Wu. The certificate stated that Wu had transferred the car to Wei and guaranteed that the vehicle had no liens or mortgages.
Upon attempting to register the vehicle, Jia found that the registration certificate was forged, and the vehicle identification number had been tampered with. The vehicle was found to have been stolen in May 2016. Jia demanded a refund from Wei, but Wei claimed to be only an intermediary and advised Jia to claim from Wu. Wu denied any contract with Jia.
The court ruled that there was a valid vehicle sales contract between Jia and Wei, as Jia had paid the full purchase price to Wei and took the vehicle. Wei's defense was rejected. Since the vehicle had been returned to its original owner by the police, Jia had the right to cancel the contract, and the court ordered Wei to refund the purchase price.
Case Analysis:
Clear Transaction Parties in Used Car Contracts: In this case, the vehicle had changed hands multiple times, and Jia did not have a written contract with Wei, making it difficult to identify the proper party to pursue in the event of a dispute.
Careful Inspection of Vehicle Source: Used cars often face ownership disputes, as the ownership may not match the registered owner, especially if the vehicle has been pledged or stolen. Consumers should verify the ownership and related documents carefully to avoid disputes.
3. Failure to Disclose Important Information
Zhao signed a contract with a car dealership to buy a second-hand car for 330,000 yuan. The contract stated that the car had no major traffic accidents. After taking the car, Zhao discovered that it had a history of a major accident and sued the dealership, requesting to cancel the contract and receive triple compensation for the purchase price.
The court ruled that the dealership had a legal obligation to truthfully disclose the vehicle's condition. The car had been in a major accident, and the dealership, as a professional second-hand car seller, should have known and disclosed this information. The dealership's failure to disclose constituted fraud, and the court canceled the contract, ordered the return of the car, and awarded Zhao triple compensation.
Case Analysis:
Consumer's Right to Information: Under the Consumer Protection Law, businesses must provide consumers with truthful and complete information about the quality, performance, and condition of products. Consumers have the right to know about significant issues like accidents or repairs.
Seller's Duty to Inspect the Vehicle: Sellers must fulfill their duty to inspect the vehicle and verify its condition. They have better access to the vehicle's history and are expected to provide this information to the buyer.
4. Inconsistent Documents, Unable to Transfer Ownership
In August 2016, Zhou signed a contract with a dealership to buy a new imported car for 1.12 million yuan. However, two inconsistent vehicle consistency certificates were provided, which led to the rejection of Zhou's registration application at the vehicle registration office. Zhou sued the dealership, seeking to cancel the contract and refund the purchase price.
The court found that the dealership should have known the required documentation for vehicle registration and could foresee potential problems with the inconsistent certificates. The dealership's failure to provide the correct documents resulted in Zhou being unable to register the car, and the court ruled for the dealership to refund Zhou and compensate for the losses.
Case Analysis:
Required Documents for New Cars: New cars must have certain statutory documents, including a certificate of conformity, tax proof, and insurance certificate, to complete the registration process.
Required Documents for Used Cars: Used cars must provide a vehicle registration certificate, inspection certificate, and other required documents to facilitate a smooth transfer of ownership.
Conclusion:
Consumers should carefully review contract terms when buying a car, clarify the rights and obligations of both parties, and ensure that vehicle information is accurate and complete. In case of issues, legal action can be pursued to protect consumer rights.