NEW JERSEY BREACH OF CAR SALE CONTRACT FREQUENTLY ASKED QUESTIONS

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INTRODUCTION

This article discusses New Jersey breach of car sale contract frequently asked questions

NEW JERSEY BREACH OF CAR SALE CONTRACT FREQUENTLY ASKED QUESTION #1

WHAT IS A CONTRACT LAWSUIT?

A New Jersey breach of car sale contract lawsuit is usually a disagreement between a car dealer and a car buyer or car lessee involving a breach of an oral or written contract for the sale or lease of a car.

NEW JERSEY BREACH OF CAR SALE CONTRACT FREQUENTLY ASKED QUESTION #2

HOW DOES A CONSUMER PROVE A BREACH OF CAR SALE CONTRACT LAWSUIT?

To establish a breach of car sale contract lawsuit against a dealer, the consumer must prove that:

  • The consumer and car dealer entered into a contract containing certain terms – a valid contract.
  • The consumer did what the contract required the consumer to do.
  • The car dealer did not do what the contract required the car dealer to do. This failure is called a breach of contract.
  • The car dealer’s breach or failure to do what the contract required, caused a loss to the consumer.

One of the elements that the consumer must prove is the car dealer’s breach of car sale contract. Failure to perform a contract in accordance with its terms constitutes a contract breach of car sale contract. It does not matter if the failure was purposeful or inadvertent. A contract breach may be material or minor. The generally accepted rule is that whether a contract breach is material is a question of fact. However, courts will enforce a contractual provision establishing that a particular contract breach is grounds for termination of the contract. The consumer can sue for any contract breach, even if minor, if the contract breach causes the consumer measurable injury or damage. When there has been a minor breach that may have caused the consumer injury or damage, it is possible for the court to decide that the car dealer has nevertheless substantially performed the contract. To find that the car dealer substantially performed the contract, the Court must find from the evidence that the car dealer made a good faith effort that actually achieved the essential purpose of the contract and provide the consumer with the fundamental benefits that the consumer was supposed to receive from is the contract. If the car dealer substantially performed the contract, it will affect the amount of money damages that can be awarded for the breach of the contract.

NEW JERSEY BREACH OF CAR SALE CONTRACT FREQUENTLY ASKED QUESTION #3

HOW DOES A COURT DECIDE IF A BREACH OF CAR SALE CONTRACT IS MATERIAL OR MINOR?

A contract breach is material if it affects the purpose of the contract in an important or vital way. A material breach defeats the purpose of the contract and is inconsistent with the intention of the consumer and the car dealer to be bound by is the contract terms. When a car dealer materially breaches a contract, the consumer has a right to terminate is the contract and may be excused from further performance of plaintiff’s remaining obligations under is the contract. The Court may use the following criteria for determining whether a contract breach is material:

  • the extent to which the injured party will be deprived of the benefit which he/she reasonably expected;
  • the extent to which the injured party can be adequately compensated for the part of that benefit of which he will be deprived;
  • the extent to which the consumer or car dealer failing to perform or to offer to perform will suffer forfeiture;
  • the likelihood that the consumer or car dealer failing to perform or to offer to perform will cure his failure,
  • taking account of all the circumstances including any reasonable assurances;
  • the extent to which the behavior of the consumer or car dealer failing to perform or to offer to perform comports with standards of good faith and fair dealing.

NEW JERSEY BREACH OF CAR SALE CONTRACT FREQUENTLY ASKED QUESTION #4

WHAT HAPPENS IF THE CONSUMER’S PROMISE UNDER IS THE CONTRACT WAS DEPENDENT UPON THE CAR DEALER’S PERFORMANCE AND THE CAR DEALER FAILS TO PERFORM UNDER THE CONTRACT?

When the consumer’s promise under is the contract was dependent on the car dealer’s performance and the car dealer fails to perform, then the consumer is excused from further performance of the consumer’s promise. When a car dealer materially breaches the contract but does not indicate any intention to renounce or repudiate the remainder of the contract, the consumer can elect to either continue to perform or cease to perform. If the consumer elects to perform, the consumer has no excuse for ceasing performance. But even if the consumer elects to perform, the consumer can still sue for any injury or damages suffered because of the material breach.

NEW JERSEY BREACH OF CAR SALE CONTRACT FREQUENTLY ASKED QUESTION #5

WHAT DAMAGES CAN A CONSUMER RECOVER FROM A CAR DEALER FOR A BREACH OF CONTRACT?

Where two parties have made a contract, which one of them has broken, the damages which the other party ought to receive, in respect of such breach, should be such as may fairly be considered either arising naturally, i.e., according to the usual course of things, from such breach of contract itself, or such as may reasonably be supposed to have been in the contemplation of both parties at the time they made the contract, as the probable result of the breach of it All that is necessary, in order to charge the car dealer with a particular loss, is that it is one that ordinarily follows the breach of such a contract in the usual course of events, or that reasonable men in the position of the parties would have foreseen as a probable result of breach. The consumer need only demonstrate that the damage was a type that a prudent person would have realized to be a probable result of his breach. The consumer need not establish that the car dealer had reason to foresee the specific injury that occurred. Contract damages are designed to put the injured party in as good a position as if the contract had been performed. In cases involving breach of contract, either an out-of-pocket loss or a demonstration of loss in value could support proof of the consumer’s damages A breaching party can be liable for damages far in excess of the value of the contract.

NEW JERSEY BREACH OF CAR SALE CONTRACT FREQUENTLY ASKED QUESTION #6

WHAT IS A VIOLATION OF THE COVENANT OF GOOD FAITH AND FAIR DEALING CLAIM?

The law implies a requirement that each party to a contract must act in good faith and deal fairly with the other party in performing or enforcing the terms of the contract. This implied agreement is part of the contract, just as though the contract expressly states this good faith and fair dealing require­ment. To act in good faith and deal fairly, a party must act honestly when performing or enforcing the contract. A party is not permitted to do anything that will have the effect of destroying or injuring the right of another to receive the fruits of the contract. In addition to the express terms of a contract, the law provides that every contract contains an implied covenant of good faith and fair dealing. This means that, even though not specifically stated in the contract, it is implied or understood that each party to the contract must act in good faith and deal fairly with the other party in performing or enforcing the terms of the contract.

To act in good faith and deal fairly, a party must act in a way that is honest and faithful to the agreed purposes of the contract and consistent with the reasonable expectations of the parties. A party must not act in bad faith, dishonestly, or with improper motive to destroy or injure the right of the other party to receive the benefits or reasonable expectations of the contract.

There can be no breach of the implied covenant of good faith and fair dealing unless the parties have a contract. Additionally, the implied covenant of good faith and fair dealing may not override an expressly granted right under the contract. For example, an implied covenant of good faith and fair dealing may not override an express provision in the contract giving one party the right to terminate the contract and the party’s motive in terminating the contract under such circumstances may be irrelevant. A party must still, however, act in good faith in the performance of the contract until the termination actually takes place. Thus, even though the party complies with the express contract term entitling him to terminate the contract, he may still be in breach of the covenant of good faith and fair dealing if he fails to act in good faith and deal fairly until the contract is actually terminated. There are many forms of conduct that might constitute a violation of good faith and fair dealing, but each case is fact-sensitive.

NEW JERSEY BREACH OF CAR SALE CONTRACT FREQUENTLY ASKED QUESTION #7

WHAT IS A VIOLATION OF THE COVENANT OF GOOD FAITH AND FAIR DEALING CLAIM?

To prove a violation of the covenant of good faith and fair dealing claim, the consumer must prove each of the following three elements by a preponderance of the evidence:

  • Some type of contract existed between the parties. There can be no breach of the covenant of good faith and fair dealing unless the parties have a contract.
  • The car dealer acted in bad faith with the purpose of depriving the consumer of rights or benefits under the contract. Did the car dealer acted with bad faith to interfere with the consumer’s right to receive the benefits of the contract? Proof of bad motive or intention is essential to a claim that the car dealer has violated the covenant of good faith and fair dealing. In considering what constitutes bad faith, the Court should consider a number of factors, including the expectations of the parties and the purposes for which the contract was made. The Court should also consider the level of sophistication between the parties, whether the parties had equal or unequal bargaining power and whether the car dealer’s action involved the exercise of discretion. However, bad faith is not established by simply showing that the car dealer’s motive for his/her actions did not consider the best interests of the consumer. Contract law does not require parties to behave thoughtfully, charitably or unselfishly toward each other. For the consumer to prevail on his/her claim, you must specifically find that bad faith motivated the car dealer’s actions. A defendant who acts in good faith on an honest, but mistaken, belief that his/her actions were justified has not breached the covenant of good faith and fair dealing.
  • The car dealer’s conduct caused the consumer to suffer injury, damage, loss or harm.

NEW JERSEY BREACH OF CAR SALE CONTRACT FREQUENTLY ASKED QUESTION #8

WHAT DAMAGES MAY A CONSUMER RECOVER FOR A VIOLATION OF THE COVENANT OF GOOD FAITH AND FAIR DEALING CLAIM?

The measure of damages applicable to breach of contract claims discussed above is also applicable to claims for violation of the implied covenant of good faith and fair dealing.

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Call Perlman DePetris Consumer Law for a no obligation phone consultation. Handling your case wrong from the beginning may only cost you more money and time in the end!! Try to do it right the first time by seeking legal advice from a competent lawyer! You might be entitled to be represented on a contingent basis, meaning that the attorney won’t get paid unless the case is successful and that the lawyer gets paid from your recovery instead of requiring you to pay attorney’s fees out of your own pocket up front. Other cases can be handled for a relatively small one-time payment of an up-front fixed attorney’s fee and with a contingent fee at the end of the case. Filing a claim yourself is very risky, since businesses often hire experienced defense attorneys to fight your case. Also, if you try to negotiate a settlement yourself, you may get less money than you deserve. You should always speak with an attorney before coming to any conclusions about your claim. Do not try to interpret the law by reading a website! Even if the facts of your case don’t fit Consumer Law requirements, you may be entitled to sue a business for a breach of your warranties under other state and federal laws or for a breach of car sale contract or for some other type of claim and you may recover money damages, attorney’s fees and court costs.

DISCLAIMER

While this page gives some general background information, there is the danger that relying on this information alone could lead you to lose your claim. Laws and regulations frequently change and the law may have changed since the posting of this webpage. Factual differences between your case and cases described on this webpage can affect your chance of success. Don’t attempt to rely on the internet as the only source of information for your claim! Instead, get competent legal advice from a licensed attorney. Call Perlman DePetris Consumer Law for a no obligation phone consultation.