Your question about a vehicle lease raises issues of contract law that may be of broad general interest to readers of this site.
In car leases, even where a salesman has signed the contract, “management” may have to approve and sign off on the paperwork. When the consumer walks out of the dealership, even with keys in hand, the final agreement may or may not have been signed by someone with authority to sign for the dealership.
That provides at least two alternatives.
ALTERNATIVE ONE: In alternative one, the contract may not have been “formed”. The consumer may honestly think that the salesman’s signature is enough. However, the contract may provide somewhere in the terms -- maybe in small print or an attachment -- that an extra signature is required. Maybe a lender must also sign.
In Maryland, as a general rule, a contract is not binding until whatever the agreement says is necessary to “form” the deal has been done.
If a signature of “management” or required third party has not been obtained, then there may have been no contract formation and therefore no contract.
If there is no contract, then the consumer would be in possession of the dealership’s vehicle. Without the consumer having the right to possess the vehicle, the dealership would have the right to demand return of its vehicle.
Car rental companies often report cars as stolen when they are not timely returned. If the consumer does not have the right to possess the car, the police might well get involved on the dealer’s behalf.
ALTERNATIVE TWO: In alternative two, the contract has been signed by all necessary parties.
In alternative two, once the contract is binding, generally the consumer has the right to possess the car for the lease term so long as the consumer abides by all the terms.
If the consumer has the right to possess the vehicle and the dealership reports the vehicle as stolen, the dealership might have liability, such as for filing a false police report and breach of contract.
Fact specific cases usually require a trial to sort out. There is a body of law on “mistake” in contracts. Was the mistake fundamental and mutual or did one side make the mistake on their own? Depending on the court’s answer, the contract might be left alone, voided, or rewritten.
This response is at best a general overview and does not cover all issues. I encourage you, and all other readers, before you act (or decide not to take some action) to seek competent, local legal counsel who can address the specific facts of your particular situation.
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