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.