CALIFORNIA Home Improvement Contract Law Test Question 1


1.My contract has a 3-day right to cancel form included on the backside with the other notices and provisions so the customer can cut it out and send it to me if they wish to cancel.





Here is why: This is a federal law which California, and every other state MUST follow. In California, the Business and Professions Code Section 7159 states: 

"The notice shall be accompanied by a completed form in duplicate, captioned "Notice of Cancellation," which shall also be attached to the agreement or offer to purchase and be easily detachable...."

Apart from the fact that this notice must be given in duplicate, (one copy for the customer to keep for their records, one copy for the customer to send to the contractor if they wish to cancel), which means the customer would have to be given two copies of the contract, there is NO WAY a Notice of Cancellation form that requires the customer to cut up their contract to use would be considered "easily detachable".
The only logical way to handle this is to make the Cancellation Form a separate form given in duplicate, or triplicate if you want to keep a signed copy with your customer records, and "attach" this form to the contract. Keeping a signed copy with your records is a good idea. This prevents a customer from claiming they "didn't get the 3-Day Notice" since you will have a signed copy stating that they did.