Contracts & ExecutionQuestion 657 of 690
A contractor solicits a home improvement contract at the homeowner's residence following a door-to-door knock. Under Civil Code §1689.7 (the Home Solicitation Sales Act), the homeowner generally has the right to cancel the contract:
a.Within 24 hours, only if the contract exceeds $1,000
b.Anytime before the contractor orders materials
c.Within 7 calendar days, in writing only
d.Until midnight of the third business day after the buyer signs (5 business days for buyers age 65 or older), by delivering written notice of cancellation; the contract must disclose this right and provide a separable Notice of Cancellation form
Explanation
Civil Code §1689.6–§1689.7 (the Home Solicitation Sales Act) gives a buyer three business days to cancel a home-solicited contract — extended to FIVE business days for buyers age 65 or older under §1689.6(c). The contract must include a Notice of Cancellation form (in duplicate, in the same language as the sales presentation) and prominent disclosure of the right. Bus. & Prof. Code §7159 incorporates these requirements for home improvement contracts. The 24-hour, materials-ordered, and 7-day options misstate the rule and are common distractors.
Law Reference: Civil Code §1689.7Practice all 690 questions free — no signup required.
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