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      09-01-2011, 10:29 AM   #25
aspiring335
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Quote:
Originally Posted by MOAB View Post
Really? Is this proivded for in some statute? Because it is contrary to ordinary contract law.
http://www.omvic.on.ca/services/cons...posit_back.htm

From this link:

Since there is no provision for a "cooling off" period in Ontario's law, if you want to cancel a vehicle purchase agreement the dealer is entitled to claim "liquidated damages" and retain a part – or all – of your deposit. Liquidated damages arise from the expenses the dealer might have already incurred in when selling the vehicle to you: e.g. advertising, freight and administrative costs, as well as from the loss of profit resulting from this cancellation.

Basically the dealer has to prove in the form of an itemized list the actual liquidated damages incurred by the cancellation. They can't keep the deposit as an arbitrary penalty just because a buyer cancelled an order.
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