Tori and Scott have applied for an $8,000 installment loan to pay for a new car. They are told that the loan is approved and the lender fills out all the paperwork, which states that they will pay an annual percentage interest rate of 12.3%. Tori and Scott signed the loan papers. The next day, they find another car dealer who will sell them the same car at the same price but with an interest rate of just 9%. They do not live in a state that has a cooling off period for auto loans. What are their options?

Question

Business

Reynaldo Keller

9 February, 19:14

Tori and Scott have applied for an $8,000 installment loan to pay for a new car. They are told that the loan is approved and the lender fills out all the paperwork, which states that they will pay an annual percentage interest rate of 12.3%. Tori and Scott signed the loan papers. The next day, they find another car dealer who will sell them the same car at the same price but with an interest rate of just 9%. They do not live in a state that has a cooling off period for auto loans. What are their options?

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Answers (1)

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Foley · Answer 1

Answer: They have already signed the contract with the first deal and now the only option to them is to take the original deal since they have already signed the contract which means they now have a legal duty to that first dealer.

Explanation:

What is legal duty?

Legal duty is a legally binding obligation on a contract to follow the law when doing something towards the other part. Since they have signed it is legally binding that they now take the original deal or the first deal.