Hi. a couple of years ago a close family friend of mine was having trouble being able to afford his car loan and asked me if I would be interested in buying his car. I stupidly agreed to and signed a private agreement for the sale of the car to me, but was unable at the time to get finance because I had only just started working a casual job. We wrote up this agreement and signed it. I then told him i would be getting finance soon and he responded with saying a owe him the money he owes on the car loan, not the money i agreed to pay for the car. He owes 8 thousand on his loan which encumbers the car, I owe him 5 thousand on the car. I want to know if this contract even stands up in court because he is not the legal owner of the car? I want to hand him the car back and just walk away from this stupidity and call it a hard lesson learned. The terms of the agreement are this: Payments set out weekly and including insurance (not contesting that) of $99.64 a week to be paid to Allans Bank Account. Purchase Price is $14200.00 plus 8.46 per week for insurance which is to remain in Allans name until sign over of vehicle. then the agreement terms : Owing to ***** taking possession of the vehicle prior to payment recieved in full, the official ownership is to remain in ***** name until such a time that the full amount of the purchase price is recieved. And ***** agrees to the following: - To pay for all running and maintenance costs for the vehicle, including registration - to pay for an excess monies owed should any car insurance claims be needed -should ***** default in the payments relating to the purchase of the vehicle the vehicle is to be brought back to ***** for storage until such time as payments are brought back into line. -should ***** not be able to purchase the vehicle by paying the full purchase price and decide to abandon the committment the vehicle will be sold and any financial shortfall will be ***** responsibility to pay outstanding difference to *****. (that is any drop in price caused by reasons other than natural depreciation eg. poor maintenance, body damage) - ****is responsible for any traffic related fines (including parking and gateway tolls) -If an insurance claim is forthcoming ***** is responsble for the TOTAL cost of repairs, including excess. -At all times when dealing with authorities or any matter related to traffic incidents, ***** is at no time to indicate she is the owner or full time driver of the vehicle. -in other words ***** is totally responsible for the vehicle and all of its day to day running costs, however the car remains in ***** name until paid for in full. NOW here is the kick. The car is not owned by ******. It is financed through Capital finance. and I now only owe him $5,000 and want to pay out the car. He owes Capital finance $8,000 and tells me i need to pay out the loan or wait until he is ready to pay out the loan. I want to end the agreement because I dont want to pay out the $5k I owe him to finalise the purchase and lose even more money if he refuses to sign over the car.