Most people believe that you can cancel any contract, as long as you do so within 3 days. Contrary to popular belief, very few contracts can be canceled after they have been signed.  Only certain very limited types of contract can be canceled, within three business days after signing.  When it is applicable under the law, this three-day cancellation or “cooling-off” period is designed to give you time to think about your decision and to compare the prices and quality of competing products.

The Georgia Fair Business Practices Acts (FBPA), also known as the Georgia buyers remorse laws, allow a longer cancellation or cooling-off period for some contracts. These include a 7-day cooling-off period for campground or marine memberships, and health club or fitness center memberships. These contracts must contain a paragraph explaining your cancellation rights in detail.  If you have used the contracted services during this seven-day period, you are still entitled to a partial refund, which you should receive within 30 days.

According to the Governor’s Department of Consumer Affairs, a contract may be canceled within 3 business days under the federal buyers remorse laws only if: 

• It involves the sale, lease or rental of goods or services for personal, family or household use
• It is a written agreement between two or more parties, listing all details of the agreement and signed by all parties
• The commitment totals $25.00 or more, including interest, mailing charges and any other charges related to the agreement
• It was entered into at a place that is not the regular place of business of the merchant, such as your home, a consumer product party, a seminar sales program or a hotel room; some exceptions apply 

Please not that ALL these conditions must apply before a contract can be cancelled. Normally you must inform the company in writing of your intention to cancel the contract.  

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This entry was posted on Tuesday, December 5th, 2006 at 12:15 pm and is filed under Business Laws, State General Business Laws. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.