How to Cancel Contractor

To ensure compliance with consumer protection laws, particularly in the context of home improvement contracts, here is a comprehensive cancellation instruction for a contractor’s product:

Cancellation Instructions

Right to Cancel

You, the homeowner, have the absolute right to cancel this contract within three business days after executing the contract. This right applies if the contractor solicited business from you at any location other than the contractor’s office, and the contract was executed anywhere other than at the contractor’s office.

Procedure for Cancellation

To exercise your right to cancel, you must inform us of your decision to cancel this contract by a clear statement. Here are the steps to follow:

• Mail or deliver a signed and dated copy of the Notice of Cancellation to the contractor at the address specified below.
• Alternatively, you can send a telegram or any other written notice to the contractor.

Notice of Cancellation Form

A detachable Notice of Cancellation Form must be included with the contract. Here is what it should contain:

NOTICE OF CANCELLATION

You may cancel this transaction, without any penalty or obligation, within three business days from the date of this transaction.

If you cancel, any property traded in, any payments made by you under the contract or sale, and any negotiable instrument executed by you will be returned within 10 business days following receipt by the merchant of your cancellation notice. Any security interest arising out of the transaction will be cancelled.

If you cancel, you must make available to the merchant at your residence, in substantially as good condition as when received, any goods delivered to you under this contract or sale. Alternatively, you may comply with the instructions of the merchant regarding the return shipment of the goods at the merchant’s expense and risk.

If you do not agree to return the goods to the merchant or if the merchant does not pick them up within 20 days of the date of your notice of cancellation, you may retain or dispose of the goods without any further obligation.

To cancel this transaction, mail or deliver a signed and dated copy of this cancellation notice or any other written notice, or send a telegram, to [Contractor’s Company Name], at [Contractor’s Address] not later than midnight of [Date].

I hereby cancel this transaction.

Date: ______________________

Buyer’s Signature: ______________________

Additional Information

• If you have made any payments or provided any negotiable instruments under the contract, these will be returned to you within 10 business days of the contractor receiving your cancellation notice.
• If the contractor delivered materials to your property prior to the cancellation, you must make these materials available to the contractor. However, if the contractor fails to recover the materials within 20 days from the cancellation, the materials automatically become your property.
• The contractor is not entitled to compensation for services performed under the contract unless the services improved the property.

Mandatory Notice

The following mandatory notice must be included in the contract in at least 10-point boldface type, located just above or below the signature lines:

YOU, THE BUYER, MAY CANCEL THIS TRANSACTION AT ANY TIME PRIOR TO MIDNIGHT OF THE THIRD BUSINESS DAY AFTER THE DATE OF THIS TRANSACTION. SEE THE ATTACHED NOTICE OF CANCELLATION FORM FOR AN EXPLANATION OF THIS RIGHT.