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Debunking the myth of the “cooling-off” period

On Behalf of | Oct 23, 2015 | Contract Disputes

Oftentimes, we here at The Law Offices of Levi Williams, P.A. have Fort Lauderdale clients come to us after having supposed contractual partners claim that their agreements had a “cooling-off” period. If you have been put in a similar situation, you may be asking yourself if such a thing actually exists. Even after having gone through numerous rounds of negotiations, it is not uncommon in the business world to have partners begin to have doubts about their decisions to enter contractual agreements. The question is do they then have the right to invalidate their contracts.

The idea behind the “cooling-off” period is that any of the parties involved in a contract have an inherent right to void such an agreement immediately following its creation. However, the application of this principle is typically limited to consumer contracts. Indeed, according to information shared by the Florida Attorney General’s Office, the only instances where such protection is recognized are home solicitation sales of items valued at greater than $25, and contracts for future services.

In business terms, the philosophy of a “cooling-off” period is represented in the “right of rescission.” This right to cancel a contract can be included in those that you set up with business partners. However, there is no legal requirement for you to do so. Furthermore, those terms must be agreed upon by you, and are not inherent in the nature of your agreement.

When invoking a right of rescission, your partner can not simply state his or her intention to do so and have his decision be officially recognized. Rather, he or she must provide you with written notice within the time allotted in the contractual terms, and through the channels that were agreed upon.

Further information on enforcing contractual agreements can be found by browsing our site.