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From: turano@silver.DEC (Tom Turano  DTN 231- [Office 4735, Lab 6978])
Newsgroups: net.legal
Subject: Re: Automobile deposit refund
Message-ID: <3445@decwrl.UUCP>
Date: Tue, 28-Aug-84 08:28:44 EDT
Article-I.D.: decwrl.3445
Posted: Tue Aug 28 08:28:44 1984
Date-Received: Thu, 30-Aug-84 09:30:00 EDT
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*

	The act of getting back a deposit may not be as straight forward
as it might seem.

	When someone puts down a deposit in return for someone else
not selling an object this act can be construed as executing an option 
contract. The consideration in this case is the forbearance to act on 
the part of the seller. i.e. The seller gives up his right to sell an 
object to someone else for a specified amount of time.

	Many jurisdictions have ruled that a "volume seller" (such as
a car dealership) undergo detriment when after making a sale are forced
to work to sell the same object over again when the original buyer 
withdraws. Because of this a jurisdiction may rule that sufficient
consideration was in fact given by the dealer and therefore the option
contract was valid.

	It should be noted however that any given jurisdiction may have
statutes governing this sort of contract and that statutes of this nature
are generally implemented to protect the consumer. 

	An attorney should advise you of your rights within your jurisdiction.

Tom Turano
path: decvax!decwrl!rhea!gold!turano

Tue 28-Aug-1984 08:18 EST