For my first blog post, I’ll address the pervasive myth that you always have the right to back out of a contract within three days after you have signed it. This myth probably has its roots in Florida Statute section 501.025, which allows a buyer to cancel a home solicitation sale on or before midnight of the third day after the sale. A home solicitation sale imeans “a sale, lease, or rental of consumer goods or services with a purchase price in excess of $25.00 away from the seller’s business place whether in person or via telephone, except for sales made at a fair or commercial exhibit or pursuant to a specific request from the buyer. This provides a safety valve for those situations where you just can’t seem to get rid of that pesky door to door vacuum salesman without signing a contract.
You may be able to cancel or rescind a contract in other situations such as where you’ve been defrauded or where specific regulations require it; e.g., some home refinancings. However, there is not an automatic right to cancel or rescind every contract. The bottom line is that you must read and understand a contract before you’ve signed it and the goods or services change hands, because once you’ve signed it chances are you’re stuck with it. If you’re concerned about a particular situation, then please consult a lawyer in your area.
Copyright Notice: All Rights Reserved Harry Thomas Hackney, P.A. 2007
Fl Statute 501.025 states that a party has 3 business days to cancel a contract. What constitutes “a business day” under Florida law?
Comment by Glenn K — June 13, 2008 @ 12:28 pm |
In response to the question from Glenn K, Florida Statute section 501.021(2) states: “‘Business day’ means any calendar day except Sunday or a federal holiday.”
Harry Hackney
Comment by hthackney — June 13, 2008 @ 6:23 pm |
Florida concerned resident
I signed a notorized Mediation agreement regarding an adjustment of my spousal support payments this past Thursday 11/20/2008. I had some questions regarding
stipulations regarding my ability to pay a lump sum settlement. That being in todays
market even though I have a fair to good credit rating if funds would be available
for my refinance. He resisted adding in any contingences and the more I think about
this the more it worries me. There are serious penalties if this does not happen.
The signing was at 7:20PM. Do I have a chance of having this rescinded and or
renegotiated based upon the three day rule. Is this three business days which would
end Tuesday evening 11/25/2008
Comment by Dan — November 23, 2008 @ 10:04 pm |
I’m afraid Dan’s “comment” is an example of a couple of things. First, it isn’t a comment at all. It is a request for specific legal advice. I will never give specific legal advice to a blog comment. I know nothing of the case involved. I don’t want to know anything about the case involved. This is a family law question and I don’t even practice family law. Second, Dan has failed to read the original blog post. The original post clearly states that the three day right of rescission does NOT apply to every agreement and only applies in certain narrow circumstances. In fact, that was the whole point of the post. The first sentence refers to the three day right of rescission as “a pervasive myth.” Myth as in a fantasy, a tale, fiction…. I believe a reply to an earlier comment explains the question of whether the three days are business days or calendar days. Alas, Dan didn’t read that comment either.
Comment by hthackney — December 13, 2008 @ 7:30 pm |
Does the three-day law apply to internet purchases? Specifically, my daughter signed up on an internet site to take a college entrance exam at a cost of $140. She cancelled over the phone within three days, but the vendor refused to provide a refund.
Comment by Rick — March 23, 2009 @ 9:53 pm |
In response to Rick’s comment, I suggest that he read my response to Dan. As the title to the post says, the three day right of rescission is a “myth.” It only applies in one narrow circumstance — in home sales. That is, a sale where some salesman knocks on your door and sells you something in your home. An Internet sale does not qualify. The young lady might have been scammed, but this law is not the remedy for that.
Comment by hthackney — March 24, 2009 @ 5:35 pm |