Contracts & ExecutionQuestion 213 of 1632

The home solicitation contract rules that give a three-day cancellation right apply to a contract that is:

a.Negotiated and signed at the contractor's own place of business, not the buyer's
b.Awarded by a public agency to the low bidder after competitive bidding
c.For goods or services of $500 or more, no matter where it is signed
d.For goods or services of $25 or more, signed away from trade premises

Explanation

Civil Code §1689.5(a) defines a home solicitation contract as one for the sale, lease or rental of goods or services 'in an amount of twenty-five dollars ($25) or more' made at other than appropriate trade premises, and §1689.5(b) defines those premises as where the seller normally carries on business. The PLACE of the transaction plus a very low dollar floor is what triggers the three-business-day right under §1689.6 — not the size of the job. (a) states the exception rather than the rule: a contract negotiated and signed at the contractor's own office is made at appropriate trade premises and carries no §1689.6 cancellation right. (c) inflates the $25 floor to $500 and drops the place element, which is the operative one. (b) is not a consumer transaction at all; §1689.5(c) limits 'goods' to things bought primarily for personal, family or household purposes.

Law Reference: Civil Code §1689.5(a)-(d), §1689.6(a)

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