What to do if being sued for a contract cancelled within the 3 days?

Get Legal Help Today

 Secured with SHA-256 Encryption

What to do if being sued for a contract cancelled within the 3 days?

Over 2 years ago (2 years/3 months), I contacted a fire control company to install a sprinklers system for a business i intended to open. I called them 3 days after the signature to cancel the contract due to the fact that I was having problems getting the city to approve the building for the purpose that I intended to open the business for. The company did not provide me with any goods or services. The company never asked for a letter to confirm the cancellation. Now, after all of this time, they sent the contract to a collection agency (asking for the full amount or settle for half the amount).

Asked on January 6, 2011 under Bankruptcy Law, North Carolina

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

It's a common misconception to think that contracts may be cancelled within 3 days. Unfortunately, they can't be, except for certain specified ones (like taking a mortgage), which this isn't. Therefore, the company can hold you to the contract, though you can hold  them, too--if they never provided goods and services, they can't necessarily sue you for the money for them, though they could very likely agree to go through with the service/installation and get you to pay. However, if the fact that you could not get the sprinkler is because of factors beyond your control--the city's approval--that may constitute valid grounds to get out of a contract, since "impossibility" is a defense. So if you tried--you have to show that you did everything you could--but could not get the appropriate permissions, licenses, etc.. that might be a good defense.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption