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If customers give dealers a deposit but do not sign a contract, what rights do they have?

User Seder
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Final answer:

When customers provide a deposit without signing a contract, their rights are often limited and subject to dispute, though contract law might offer some protection. Warranties and service contracts, which are agreements for future service and repairs, typically require a formal purchase agreement to be active.

Step-by-step explanation:

If customers give dealers a deposit but do not sign a contract, the rights they have can be quite limited. Without a formal contract, there's often no legal obligation for the seller to hold an item or provide a service, and the terms of the deposit can be subject to dispute.

However, general principles of contract law might provide some protection, such as a potential claim for the return of the deposit based on unjust enrichment or a claim based on verbal agreements if they can be proven.

Sellers may offer a warranty, which is a promise to fix or replace the good, at least for a certain time period. This is separate from a deposit or a purchase contract.

Additionally, the seller may offer a chance to buy a service contract, where the buyer pays an extra amount and the seller agrees to fix anything that goes wrong for a set time period. However, both warranties and service contracts usually require a formal purchase agreement to be in place.

User Pathik Vejani
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