Contracts & ExecutionQuestion 145 of 690
If a buyer properly cancels a home solicitation contract within the cancellation period, the contractor must:
a.Keep a 10% restocking fee
b.Return all payments made by the buyer within 10 days of receiving the cancellation
c.Bill the buyer for time spent preparing the contract
d.Wait 30 days before refunding any money
Explanation
Upon a valid cancellation, the seller must, within 10 days, refund all payments made and return any goods traded in. The contractor may not retain a fee for a properly cancelled contract.
Law Reference: Civil Code §1689.7Practice all 690 questions free — no signup required.
Related questions on this topic
- A home improvement contract must include a notice informing the homeowner about:
- When a contract is subject to the three-day right of cancellation, the contractor must give the buyer:
- A senior citizen (65 or older) who signs a home solicitation contract for disaster repairs after an emergency generally has a right to cancel of:
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- Which practice by a contractor on a home improvement contract is PROHIBITED?
- A contractor takes a deposit, performs a small amount of work, and then stops returning calls and never finishes. This conduct is BEST described as:
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