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A friend was rear ended and the other party's vehicle insurance agency sent them a release and settlement of property damage claim with some vague conditions in an email:

Here is the release [attached to the email] that I will need to have signed to be able to move forward.

Once I have a copy of the title, and you let me know when would be a good time for you to have the vehicle picked up. We will also have to have the title processed per state guidelines, please hold onto the title for that.

My friend signed, scanned, and emailed back the release which included the settled on dollar value, and agreed on a date the following week the agency suggested for the pickup. If the offer letter mentioned nothing about vehicle title status (ie clean vs salvage), and the insurance agency missed the fact the vehicle was salvage condition, what is the likelihood the insurance agency is able to cancel the settlement and revise the reimbursement value, if they notice the title is marked as salvage condition? I think the signed settlement may be 'binding' but I have absolutely zero legal knowledge.

Thank you.

Here's the letter:

This release agreement is made and entered by x and y and its affiliated and related companies and corporations and past, present, and future officers..

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A salvage title does not negate the value of a vehicle. If there was no fraud (lying about the title) on the owner's part, and if there was actual offer and acceptance (not "negotiations in progress") then the agreement should be binding – but you would have to read the agreement to see if there are any escape clauses that would allow either party to escape the consequences of the agreement.

  • thank you @user6726. I added the letter above, as far as I can tell there are no escape clauses. They have since written back with "When were you planning on telling that your vehicle was already salvaged? I will need to review this with my team leader", and I'm unsure what info I need to give. – dbo Sep 6 at 20:20

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