Can I cancel a signed hire-purchase agreement in Trinidad if the dealer misrepresented the vehicle condition?

es, you have legal grounds to cancel (rescind) the agreement and recover your deposit under Trinidad and Tobago law, primarily through the Misrepresentation Act (Chap 82:35) and the Consumer Protection and Safety Act (Chap 82:34).

Because a hire-purchase agreement usually involves three parties (you, the dealer, and a finance company), the law treats the dealer as an agent of the finance company during antecedent negotiations. This means the finance company is generally held responsible for any false claims the dealer made to get you to sign.

1. Your Legal Rights to Rescind

Under T&T law, you have a right to rescission, which aims to put you back in the position you were in before the contract was signed (i.e., your deposit back and the contract voided).

Misrepresentation Act: If the dealer made a false statement of fact, for example that this car has never been in an accident when it has, the contract is voidable. This applies even if the misrepresentation was innocent (the dealer didn’t know) or negligent.

Consumer Protection and Safety Act: This Act gives you the right to redress if an item does not match what you were led to believe you were purchasing. Redress includes a full refund, replacement, or repair.

Implied Terms: Regardless of what the contract says, the law implies that the vehicle must be of merchantable quality and fit for its purpose. Major mechanical issues discovered immediately after purchase typically breach these terms.

2. What Proof Youll Need

To successfully cancel the agreement and get your money back, you must act quickly and gather the following:

The Lies: Copies of the original advertisement (Facebook posts, newspaper ads, or window stickers) and any WhatsApp or email threads where the dealer described the car condition.

The Reality: A detailed independent mechanic s report. This is your most critical piece of evidence. It should list the specific major issues and, if possible, estimate how long they have existed.

Timeline of Events: A written log of when you discovered the issues and how soon you notified the dealer. Delaying can be seen as affirming the contract, which makes it harder to rescind.

3. Recommended Steps

Do not just stop making payments, as this could damage your credit or lead to repossession. Follow this path instead:

Step — Action
1. Stop Using the Vehicle: Continuing to drive the car can be interpreted as accepting its condition.
2. Formal Letter: Send a formal Notice of Rescission to both the dealer and the finance company. State clearly that you are rescinding due to misrepresentation and demand your deposit back.
3. Consumer Affairs: If they refuse, contact the Consumer Affairs Division (CAD). They provide mediation services and can often force a resolution without you needing a lawyer.
4. Legal Action: If the value is under 50,000 TTD, you can pursue the matter in the Petty Civil Court (Small Claims) without an attorney. For higher amounts, you would likely need a High Court claim.

Note: Check your contract for a cooling-off clause. While T&T law doesn't mandate a general 14-day cooling-off period for cars (unlike the UK), some specific finance agreements include a voluntary window for cancellation.