1. Genuine Mistake: The mistake must be genuine and unintentional. It should not be a deliberate misrepresentation or an attempt to deceive the buyer.
2. Material Mistake: The mistake must be material, meaning that it significantly affects the terms of the contract. In this case, the price error would likely be considered material.
3. Promptness: The car dealer must act promptly to cancel the contract once the mistake is discovered. Delaying the cancellation may weaken their case.
4. Notice to Buyer: The car dealer should provide prompt notice to the buyer about the cancellation of the contract due to the price mistake.
5. Repayment of Deposits: If the buyer has made any deposits or payments towards the purchase, the car dealer must promptly return them.
However, it's essential to note that specific laws and regulations regarding car sales and contracts may vary by jurisdiction. Additionally, the terms of the sales contract itself may influence whether the dealer can cancel the contract due to a price mistake.
In cases of contract cancellation, it's advisable for both the car dealer and the buyer to consult with legal experts to understand their rights and options under the applicable laws.
