Contracts & ExecutionQuestion 209 of 690
A homeowner exercises the three-day right to cancel a home improvement contract. The contractor had already delivered some materials. The contractor:
a.Must honor the cancellation and refund payments, and may retrieve delivered materials
b.May keep the entire down payment as a cancellation fee
c.May force the homeowner to keep the materials and pay full price
d.May ignore the cancellation if work has already started
Explanation
A timely cancellation must be honored: the contractor refunds the buyer's payments and may reclaim materials it delivered. The contractor cannot retain a fee or force the homeowner to proceed.
Law Reference: Bus. & Prof. Code §7159Practice all 690 questions free — no signup required.
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