A Forward-Thinking Firm

With Florida contracts, what is a “cooling off” rule?

On Behalf of | Apr 9, 2021 | Contracts |

When entering into any kind of agreement in Florida, it is beneficial to have the details laid out in a written contract. This is designed to protect everyone involved so the requirements, payments, how to handle issues and more are clear and understood by everyone. As with any purchase, there are other factors involved such as an attempt to nullify the agreement. This can be for any reason, but often it is due to financial concerns or people having second thoughts about what the agreement entails. Regardless, it is important to understand a relatively understated aspect of contracts in the state: the “cooling off” rule.

Facts about the cooling off rule with Florida contracts

The cooling off rule grants people who have agreed to a contract a three-day period where they can back out of the agreement. It is important to remember that not all agreements have the cooling off grace period, so from the perspective of the business selling a product or service and the purchaser, it is wise to know if this is available. For continuous basis agreements, there is the cooling off period.

A contract for services that would be provided in the future can also be canceled based on the cooling off rule if a person is no longer able to receive the services or it is unavailable in its original form. A home solicitation sale in which items are sold at a person’s residence or in a location separate from the home or the seller’s base of operations also allows the three-day cooling off period if it costs more than $25.

A mistake people frequently make with any purchase or sale is that they fail to get the details in writing. With the right to cancel, it must be in writing to avoid disagreements and claims of dishonesty from either side. If the sale was not for an item but for services that will be provided in the future, there is no need for it to be in writing. Still, it is often preferable. Once the contract is canceled, the refund must be made within 20 days.

Legal assistance can be essential with business contracts

Whether there is a dispute over an attempt to nullify contracts or there are other issues that have come up, it is always wise for businesses to be aware of the nuance of contracts. If the contract is poorly formulated or misses key aspects, it can cause a litany of problems in the future, especially if there is litigation. To have a comprehensive and effective contract that follows all the necessary laws, comprehensive guidance may be necessary. A consultation and legal representation can be helpful.