Contracts & ExecutionQuestion 145 of 1632

If a buyer properly cancels a home solicitation contract within the cancellation period, the contractor must:

a.Keep a restocking fee of 10% of the total contract price
b.Refund the buyer's payments and any note within 10 days
c.Refund only after the buyer has returned the goods delivered
d.Refund the buyer's payments and any note within 30 days

Explanation

Civil Code §1689.10 gives the seller 10 days after a home solicitation contract is cancelled to tender back every payment the buyer made and any note or other evidence of indebtedness. Thirty days is not a deadline anywhere in the home solicitation statutes. A restocking or contract-preparation fee is exactly what a properly cancelled contract forbids the contractor to keep. And the refund does not wait on the goods: until the seller tenders the money, the buyer may keep possession of what was delivered and holds a lien on it for the amount owed.

Law Reference: Civil Code §1689.10; §1689.7

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