I get calls from people who bought something (maybe a car from a ‘buy here – pay here’ lot) and they want to know if they can take it back because they are still within the first 3 days. They always start the conversation with “‘There is a 3 day right to rescission, right?’
Well, maybe right. But most often, WRONG.
First of all, a rescission is a way of voiding the contract. It means that things would go back to the prior status as if the contract never happened. Another way to think of this is that you are cancelling the contract.
There is a 3 day right to rescission when you refinance your home mortgage. Of course, that also means that the funds are not released until the end of that 3 day period either.
You can also rescind the ‘refund anticipation’ loan from your tax preparer within one day. Of course, you must either return the check uncashed or give the same amount in cash to payback the loan in full.
There are also some other types of right to rescission, but they are not really common in everyday life.
The big point is that when there is a right to rescission, it will be written into the contract. That is only one of the reasons that it is very important for people to read contracts before signing. You really need to know what is in that agreement! Most of the time there will be a notice of a “Right to Cancel”, or “Cancellation”, or “Right to Rescind”. As with other parts of the contract, if you don’t understand what something means, don’t sign the contract until it has been explained to you so that you do understand.
If you are talking to a salesperson and he says that you have a right to take the car back at no cost to you, ask him where that is written in the contract, just so you can read it yourself to be sure. Or, you can just make it a point to wait a few days before you make any big purchase so you have time to consider whether you really want the item.
If you have any questions about this or any other legal subject, please feel free to give us a call at 757-234-4650 or visit our website at http://www.BeaversLaw.com.