Contracts & ExecutionQuestion 716 of 1632

A contractor includes a clause in the home improvement contract stating the buyer waives their right to cancel. This clause is:

a.Enforceable on contracts above $10,000 in total contract value
b.Enforceable where the buyer separately initials the clause
c.Valid only where the buyer is a commercial entity, not a consumer
d.Void; the cancellation right cannot be waived this way

Explanation

The three-business-day right comes from Civil Code §1689.6 and B&P §7159(e), and the only route out of it is Civil Code §1689.13: a buyer-initiated contract for emergency or immediately necessary repairs, plus a SEPARATE dated statement signed by the buyer describing the situation and expressly waiving the three-, five- or seven-day right. A waiver pre-printed in the contractor's own form satisfies none of that. Putting it there is worse than ineffective — B&P §7161 makes a false or misleading statement used to induce a home improvement contract a public offense, and §7160 gives the owner damages plus a $500 penalty and fees. (a) and (c) invent thresholds; the right does not scale with price, and a home improvement contract is residential by definition. (b) treats the buyer's initials as the separate statement §1689.13 demands, which is precisely the shortcut that section forecloses.

Law Reference: Civil Code §1689.6, §1689.13; Bus. & Prof. Code §7159(e), §7160-§7161

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