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Faxed purchase order is binding

Dear Terry,
I live in Toronto and recently signed a retail purchase order (via fax) to buy a car from Wilmington Toyota in North Carolina. I had to cancel this purchase due to changes in border policy. Is a faxed copy a binding contract? Can I get my deposit back? Could they force me to buy the car?
-- Rachelle

Dear Rachelle,
Yes, a signed, faxed contract is binding, but in your case it depends on the language of the contract. Did it contain language that said the car had to meet Canadian import standards? Was the contract based on the dealership promising to deliver the car to Toronto?

If not, technically the dealership could try to enforce the contract, or at the very least keep your deposit. But the dealership should acknowledge that it couldn't complete the sale because of legal entanglements and cancel the contract with no penalty to you.

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