Legal Question in Business Law in California

Re: Vehicle Contract

Only a bankruptcy will get you off the contract

Re: Vehicle Contract

Unless you have a lemon-law claim or something, there is probably nothing painless you can do to get out of the purchase agreement. Apparently it's the boyfriend and not the car that's the lemon.

Since you are not married, your repsective rights are determined by the general principles of contract law, etc. rather than family law concepts of community property and the like.

From the lender's point of view, you are both liable for the full amount of the loan. This only means they can collect up to 100% of what they're owed form either or both of you, but not more than 100%. Between the two of you, unless there is some special arrangement, either could sue the other to recollect anything paid in excess of 50%.

So much for the loan obligation. Now let's consider ownership and possession of the car.

The name(s) on the title (pink slip) raise a presumption of ownership. If both your names appear, a cop or a judge is entitled, absent other evidence, to conclude that you are equal co-owners and each has a right of possession. That means if you drive it away from his house it's not theft, and vice-versa. I don't however advocate being your own repo man.

Who paid the down payment? There is a principle of law called "purchase-money resulting trust" that says true ownership follows the purchase money. It is usually applied in real estate matters--if I buy a house with your money but accept and record a deed to it in my name, that doesn't make me the owner. Instead, I am deemed to hold it in trust for you. This principle is rarely asserted in the personal property arena, but I believe it applies. If you can prove you made 100% of the down payment, you might get a court to agree you own 100% of the car, and give you an order directing the DMV to issue a new title in your name. Who made the monthly payments would in theory have no effect on the outcome.

Another possibility is a so-called partition. This remedy is used mainly to dispose of real estate held by feuding co-owners, but it can be used with personal property as well.

Unfortunately, pursuing exotic theories in court is probably too expensive and time-consuming. Is there any possibility you can negotiate?

Another possibility is to file a small-claims action asserting that you are at least a 50% owner but have been unlawfully deprived of your right of possession and use and have suffered damages in the amount of -- well, pick a figure less than $5000 -- and see if the small-claims judge can fashion a remedy. If you do this, get a small-claims self-help book and study it thoroughly. Then see the county small-claims advisor (ask the court clerk who and where).