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Yates Association

When You Can Cancel a Contract

If you are considering entering into a contract you may have time to cancel the contract if the contract relates to:

  • Buying from a door-to-door salesperson
  • Signing a contract at a trade show
  • Enrolling in a vocational school
  • Signing with a health club, a diet or fitness center, or a martial arts school
  • Signing with a dating or social referral service
  • Signing with a home improvement contractor
  • Refinancing a residential mortgage or
  • Placing bulk meat orders

In certain transactions, the law gives you a "cooling-off" period during which you may cancel with minimum penalty. When you cancel, send your notice by certified mail, return receipt requested. This prevents the seller from claiming the cancellation was never received.

A contract is a legal promise to pay. Although a verbal agreement can be a contract, this can be very hard to prove. You are advised to get everything in writing. Once it is written and signed, you are committed to what's written, regardless of what the salesman says verbally.

If you change your mind or break your promise there can be legal consequences. If you drop out of the health club or the school after two months, if you're disappointed in the dating service or you don't like the home improvement contractor, you could lose your money or even be sued for the balance.

Any person 18 years old is considered an adult in New York State. He or she can enter into a contract and be held responsible.

Here Are Five Rules For Contract Signing

  1. Are the salesman's verbal promises written in? Don't rely on verbal promises. All costs, dates, schedules, guarantees and details should be written into the contract.
  2. If you don't understand something, show the contract to an attorney or a knowledgeable friend before you sign.
  3. Check the small print, back and front. Contracts usually protect the seller. Does it say you'll lose your deposit if you don't complete the purchase?
  4. Make sure there are no blank spaces. If you want the contract changed, have the changes written and initialed.
  5. And lastly, is the contract signed by an authorized person? Be sure to ask.

For answers to additional questions about Consumers Concerns listen to other Dial Extension tapes or contact your Cornell Cooperative Extension office.

Cornell Cooperative Extension Yates Association
Last updated: 8/28/01

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