A purchase agreement is an agreement that is consensual between a buyer and a seller. The agreement is born when the two sides agree on goods and prices, although the goods have not been delivered and the price has not been paid. The buyer and the seller both have rights and obligations based on the agreement; the buyer is obliged to deliver the goods and has the right to obtain payment of the price, while the buyer is obliged to pay the price and is entitled to receive the goods as promised.
Before doing a deal, you need to know about the terms and provisions of a legal contract, which entail:
- The achievement of an agreement for those who bind themselves – the agreement may not be a result of a mistake, coercion, or
- Being competent to make such a commitment – meaning the person is legally able to conduct legal action, is an adult, not under guardianship, and not mentally disabled.
- Having certain stipulations – the agreement should specify the types of terms that will be agreed upon. The buyer may also require that certain items be furnished - ie. house plans
- A lawful clause or clauses – agreements made should not be contrary to law, morals and public order.
If it turns out there is a violation of the purchase agreement or a defect of the provisions mentioned in number 1 and number 2, then the affected party may request cancellation of the agreement. If there are violations/defects of the provisions mentioned in number 3 and number 4, then the agreement that has been made shall be deemed void (even without requested cancellation).
Based on the information that you provide to us, then the purchase agreement may be cancelled if there are elements of negligence in reaching the agreement. If there is a mistake regarding the nature of the goods that are the subject of the purchase agreement, for example, if you do not know the market price of the car that will be sold to you, you as the buyer can ask for cancellation of the agreement because it will not be deemed as valid.
If you as the buyer decide not to go through with the purchase after the down payment has been made, no refund will be issued. On the other hand, you can get a refund of the money you paid for the down payment if the purchase agreement is deemed to be not valid. As a buyer you have the right to obtain compensation and/or replacement if the goods received are not in accordance with the agreement.The seller has an obligation to provide compensation, and/or replacement if the buyer demonstrates that the terms of the purchase agreement were not upheld by the seller.