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I need to know if it is a state or a federal law for businesses to have a cancelation clause in there contract

also if it is legal for them to refuse to cancel the contract. I dont know if this is a law but if it is i need to know if it is state or federal. I live in Indiana so if anyone could help it would be greatley appreciated.

Public Comments

1. I think it depends on the business. Is it a financial institution? Mortgage company you are talking about? In that case, I believe it is in the UCC which is a Federal Document.
2. There are specific laws requiring a cancellation clause in two cases of which I am aware: something sold to you by a sales person that visits you in your home (such as by an Avon or Amway person) and when purchasing a car. I believe each one is 72 hours, however it may vary by state. Other than that I do not believe a business is required to give you that option. If the goods have not been delivered or the service provided, you can ask them nicely co cancel and they might, however they have no obligation to do so. I am not a lawyer, and I don't play one on TV. My answer is based on personal experience. Your best bet is always to ask legal questions to lawyers.
3. There is a federal law that provides that if a consumer contract is made in the consumer's home (as opposed to at a store or place of business) then the consumer 3 days to cancel. There is another federal law that gives 3 days to cancel health spa sales, and for cancellation of finance contracts when your home is used as collateral. Other than that, contracts are generally final and binding when made.