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Legal information capsules
Consumer Protection - The Option purchase and his conditions
You would like to buy an all-terrain vehicle at a price of 9500$ but you do not have the funds. Then a sales representative offers you to pay him money every month until you obtain the total amount which you can then proceed with a purchase, without any written agreement.

However, following a deposit of $ 3 030 over a period of one year, you decide to claim this amount because you are no more interested, but the company claims that this was a sale and she wants the balance of the price which is 6 $ 470.

The Court of Quebec ruled in the same situation that in the absence of transfer of ownership and delivery of the goods, any sale agreement had been reached. We are in the presence of a unilateral promise to purchase conditional on an exercise of the option at the time determined by the buyer. The buyer is entitled to reimbursement of the amount paid because he has not exercised his option to purchase the vehicle.

Note that if the sale would have been done, the company would still have to prove the existence of a written contract as required by the Act on Consumer Protection.

JE 2011-703