# Car Deposit



## uaedude (May 16, 2014)

So I put down a deposit on a car in the UAE. Before the finance went through I decided to back out, realising I would lose the deposit. Now the dealer has called me to say that I have entered a legally binding contract and they don't want things to get difficult. I have not signed any contract, are they able to make me take the car?


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## BedouGirl (Sep 15, 2011)

One of our regulars BigJimbo is probably the best person to ask about this. He's works for Toyota. Once you have made five good posts, you can PM him, I'm sure he won't mind . The other thing you can do is to contact the consumer rights section at DM. You can google them to get the number.


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## rsinner (Feb 3, 2009)

they are probably just trying to scare you - the sales guy must be under pressure as he might be losing his commission.
If you haven't signed anything, you are in the clear.


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## Tropicana (Apr 29, 2010)

The only thing they can do is make the deposit non refundable.

There are plenty of people who pay deposits on cars and back out later on for various reasons


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## w_man (Apr 16, 2010)

Yea - if you haven't signed anything, you are not in any binding contract.

Just for fun - Call him back and say ..


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## ziokendo (Jan 7, 2012)

Usually they will register your car only after receiving full payment, I am not aware of any sensible business doing otherwise.

What the dealer is referring to is probably his legal title to withold a deposit if you didn't agree some kind of contract/receipt where it states that the deposit is non refundable. How can they demonstrate for what reason they hold your money w/o giving something in exchange ? Especially if such money has been transferred to them in a trackable way (cheque, bank transfer).

Anyway a word of caution to all the people believing that "if i have not signed I am not bound to anything", in a lot of jurisdictions a verbal contract is as good as a written one and carries the same duties, especially when it can be demonstrated by "concluding actions" (a payment is a concrete concluding action for a commercial transaction).

I am not familiar with UAE law, but could be the same.

After all when you go to the supermarket and buy stuff you close a contract accepting the receipt against your money, w/o signing anything, the same entering a parking and collecting the ticket, etc.


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## w_man (Apr 16, 2010)

ziokendo said:


> Usually they will register your car only after receiving full payment, I am not aware of any sensible business doing otherwise.
> 
> What the dealer is referring to is probably his legal title to withold a deposit if you didn't agree some kind of contract/receipt where it states that the deposit is non refundable. How can they demonstrate for what reason they hold your money w/o giving something in exchange ? Especially if such money has been transferred to them in a trackable way (cheque, bank transfer).
> 
> ...


That's a strange statement. There's a slight difference between OP's situation and getting groceries from a store. There are many examples where you pay for an item, collect it and get a receipt to prove that you collected the item and where you bought it from for warranty purposes.

OP is stating that he put a deposit down for a car - he understands that he won't get the deposit back - he's stated that the salesman called him and told him that he needs to purchase the car so 'there are no problems'. As far as I know, there are no laws here or anywhere in a civilized world where this would constitute as binding contract to purchase. There's no proof of the purchaser stating that he/she will purchase the product. They are simply stating that they need to do some homework, get financing, think about it etc but are willing to drop a deposit for the product to compensate for the wait.

In a situation where you leave deposits (specially non-refundable), you are not necessary committing to purchase the product, you are 'purchasing' the right to delay the purchase and change your mind if you want at the cost of the deposit. Unless of course you sign a binding contract stating that you will purchase the product.


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## ziokendo (Jan 7, 2012)

About the car we are pretty much conveying the same concept. There's no doubt in this case, because it is a registered item (like buying a boat or a house), you indeed need clear paperwork.

My last statement about non written contracts still binding was obviously not related to this specific post or to the car transaction, but just a generic word of caution.
In some jurisdiction (1st world ones also) even very complex agreements (not groceries) have been demeed valid without any written contract or signature. Again I am not aware of UAE law, and has nothing to do with this car deposit case, which is pretty obvious: worst case you lose your deposit.


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## Bigjimbo (Oct 28, 2010)

I'm not 100% sure on the binding nature of the contract signed, or even if a contract has been signed. If it's a main dealer then the worst case scenario is you will lose your deposit (although there is also a good chance you will get this back if you complain loudly enough). No dealer in their right mind would register a car to a customer without having invoiced it first, and this would require you to have signed with the bank. I wouldn't worry about it. Feel free to call me for more information.


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## rsinner (Feb 3, 2009)

ziokendo said:


> About the car we are pretty much conveying the same concept. There's no doubt in this case, because it is a registered item (like buying a boat or a house), you indeed need clear paperwork.
> 
> My last statement about non written contracts still binding was obviously not related to this specific post or to the car transaction, but just a generic word of caution.
> In some jurisdiction (1st world ones also) even very complex agreements (not groceries) have been demeed valid without any written contract or signature. Again I am not aware of UAE law, and has nothing to do with this car deposit case, which is pretty obvious: worst case you lose your deposit.


UAE is not first world esp. when it comes to laws. When it comes to disputes, most of the times it is the written statement that matters. There are specific instances where a written record is not required, but most of them have to do with criminal cases (flipping the bird etc), and that is not a "contract" per se.
in any case, OP had said that he was okay with losing the deposit.


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## ziokendo (Jan 7, 2012)

rsinner said:


> in any case, OP had said that he was okay with losing the deposit.


Yep, even if in your mind you are okay with losing it, it doesn't mean that you cannot try and claim it back if nowhere he'd signed for it to be "non refundable". 

You know just for the purpose of conveying that is better not to mess further trying to sell the car implying that things can become "difficult", because maybe without any signed agreement the consumer protection agency could even get you the deposit back ... _si vis pacem para bellum_.

Anyway I am sure the OP has sorted out the matter by now ;-)


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