Notice of Cancellation

You may cancel this transaction, without penalty or obligation, within three business days from _______________.

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 seller of your cancellation notice, and any security interest arising out of the transaction will be canceled.

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

If you do make the goods available to the seller and the seller 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. If you fail to make the available to the seller, or if you agree to return the goods to the seller and fail to do so, then you remain liable for performance of all obligations under the contract.

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 _____, Seller, at ________________________________ not later than midnight of _________, 20 ____.

Receipt acknowledged: _____________________

NOTICE OF CANCELLATION:

I hereby cancel this transaction.

Dated ______, 20____.

Buyers Signature:

__________________________________________

Disclosure Notice:  Your Right of Rescission
Review List

This review list is provided to inform you about this document in question and assist you in its preparation.   This notice should be given to anyone purchasing something subject to the right of rescission.  It serves to document your good faith and provides clear time limits for performance.

1. Make multiple copies.  Give one to the signatory.  Keep one in the related transaction file.

WHEREAS, on ________________, ________________ entered into an agreement with ____________________, which under the law is subject to a right of rescission by ________________, and ________________ has determined to exercise this right, __________ is notified that ________________ herewith rescinds that agreement for the purchase of _________________________________________.

This right of rescission was sent via: __________________ to ___________________ on ____________________, 20__ at ________.

____________________________________
Rescinder

Faxed to: _______________.

Right of Rescission
Review List

This review list is provided to inform you about this document in question and assist you in its preparation.  The right to rescind is based on state laws that provide consumers the right to rescind or cancel certain purchases within a few days, usually 3, after purchase.  This rule was put into effect so if someone was high pressured into agreeing to a purchase they could get out of it.

This rule is somewhat ambiguous and determined by circumstances if brought up in court.  If, for example, you purchase something clearly marked “final sale” in an environment where no one high-pressured you (e.g., a retail store, garage sale, or the like), then you are apt to lose an attempt to void the purchase.  If, on the other hand, you agree to purchase a car from a dealer, you can generally get that purchase voided in this manner.  This document is most useful in transactions between the consumer and a business; when sales are made between individuals, they tend to stand up.

In any event, notwithstanding the above, you can always issue this notice to put the seller on notice and, at the least, improve your negotiating stance in seeking to cancel an ill-advised transaction.  These things generally come up when one spouse agrees to buy something and then the other spouse interjects him or herself into the situation and they both determine to “not” do it.

Since time is of the essence, fax the rescission notice, if at all possible, to the recipient, as well as mailing it.  If a large purchase, FedEx a copy to the Seller as well to notify them and also to indicate the seriousness of your rescission (since you took this additional step).

In sum, the rescission process is inherently a messy one.  Use your best judgment in doing so.  The worst that will happen, though, is you will be compelled to complete the transaction.  So, if you want “out,” you have nothing more to lose than having to complete the purchase.

1. Make multiple copies.  Fax, mail, and/or FedEx copies to the Seller.  Keep one with the transaction file.