I bought a car from a car dealership and had it repossesed a year later. The bank is suing me for breach of contract. They're suing the dealership as well. The dealership gave false information about me and my co-signer to get the loan. I did not know that false information was given until this lawsuit came about. I would not have signed the contract had I known that the dealership lied to get the loan. They lied about our living situatioun, our income, our relationship, and my co-signer's marital status and job title. My question is this: If the dealership lied to get the loan, am I in breach of contract? The contract was not drawn up in good faith, so doesn't that mean it was not a valid contract?
Thanks

Fr_Chuck

correct, breach of contract is just that you failed to pay, so theywill win if you can't prove you paid for the car.

The breach has nothing to do with the lies, that would be fraud

molly99

The bank stated in their case that they would not have given me the loan without the dealer's false information. I don't have to prove that the dealership lied because the bank already investigated and determined that the dealership knowingly submitted false information. I just think that there would not have been a contract for me to sign if the dealership hadn't lied. I guess I'll have to wait and see what the attorney says. Thanks for all your input.

Fr_Chuck

does not matter, this may give you grounds to sue the dealership but at the end of the day, you got the loan, and failed to pay that is the breach.

molly99

Ok, new question then. If the bank is sueing both of us for the full amount of the loan, who gets stuck with the bill?

ScottGem

Whoever the bank can collect from. They can't double dip. So, if they can collect from the dealership, it will let you off the hook.

But, if the dealership did this, they may also be facing criminal charges and probably have financial problems. Which is why the bank is going after you as well. Is the suit part of a single action or are there two separate actions?