Can we pull out of a deal after paying the deposit over the phone?

We paid the deposit for a car over the phone and overnight had second thoughts about whether we wanted to go ahead. We told the dealer this the next morning, but they say we will lose the deposit. We haven't signed anything yet - can we back out and get our money back?

Asked on 15 July 2010 by SteveQB

Answered by Honest John

Yes, the deposit is the 'consideration' that makes the deal a contract. Backing out is a breach of that contract.

Tags: consumer rights deposit

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