My Sister Is Demanding That I Give Her The Car I Paid For!

Question: I reside in Houston TX and have decided to relocate to Phoenix AZ – I decided to take over the payments on my sister’s vehicle which is currently being paid through a bankruptcy plan. I have been using the car and some damaged was sustained that I haven’t repaired yet, I also just found out that I can’t take the car out of state! My my sister is asking that I return the car to her but fix the damage first, I have no problem returning the vehicle but I have a problem with fixing the damage seeing that I am not returning the car by choice but by force. Am I obligated to pay for the damage to the vehicle even though I did not personally decide to return the car?

The Judge’s Answer: It appears that your sister breached your contract by selling you a car that you could not use as you desired (i.e. take out of state). If so, you are not liable for the damages done to the car you assumed you own and that was done while in your possession. You may have a claim against your sister for wrongful repossession if she is taking your vehicle because you are moving out of state.