Oops- I did it again, I signed a contract and now I want out!

Are you an impulsive buyer? Here are some tips to help you out!

Did you know that you were protected by the law as a consumer?

Have you ever heard of the term “cooling- off period”?  Did you know you can terminate certain contracts with a cancellation letter?

You are entitled to a cooling- off period in the following situations:

1. A product/service bought from a door- to-door salesperson

In accordance to the Consumer Protection Act, you are entitled to cancel the service within 10 calendar days for ANY reason, if the purchase was more than $50.

  • The contract shall be written.
  • The contract should include specific information about the goods/services.
  • The contract should also include your rights as a consumer.

** If the above three criterions are not satisfied then you may cancel the contract within a year of signing it. Make sure to provide a cancellation notice to the service and protect your rights.

If the product/service is not delivered in time then you can also terminate the contract.

2. A gym membership

The Consumer Protection Act protects individuals from being scammed into yearlong commitments to gym memberships.  Best part? You don’t need a reason to cancel within the 10 day cooling-off period after receiving the written copy of your contract. You can even use the facility within those 10 days to assess if the gym is a good fit for you.

If the contract requires at least a $50 deposit you will be protected under the C.P.A.  Your job is to notify the supplier via e-mail, handwritten letter or registered mail to ensure there is proof of the cancellation date and to avoid unnecessary confusion.

Why can’t I just call in? Calling in to terminate your membership is not effective as there is no written record of the cancellation.

3. Buying a newly-built condo? You’re protected under the Ontario Condominium Act

Your Rights include:

  • You can cancel the purchase within 10 calendar days (the 10 days begin from when you receive a copy of the fully signed purchase + sale agreement/ disclosure statement, whichever comes last
  • You can cancel the sales agreement within 10 days after there is a significant change in the disclosure statement (also known as a material change)
  • If you do cancel the contract, the developer shall refund any deposit + any interest that they may owe you
  • Your deposit to the developer shall be held in trust
  •  The developer cannot terminate your purchase/sales agreement without your permission/court order

    **Newly-built condos are covered by the Ontario New Home Warranties Plan Act.

    Protect yourself by providing the developer with a cancellation notice.

    If you are unsure as to how you should proceed with a matter please click on the link below to learn more or contact a legal professional such as a paralegal for assistance.

Want more information? Check out https://www.ontario.ca/consumers/your-rights-under-consumer-protection-act for more information.

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