Consumer Protection Law
Consumer Protection Law Questions? Ask a Lawyer Now.
I'm Lucy, and I'd be happy to answer your questions today. I'm sorry to hear that this happened.
Read through the first contract to see if it says that it's contingent upon you obtaining financing for the full roof. If it DOES, you're allowed to cancel the second contract under the 3 day right of rescission and the first contract fails under the financing clause. If the original contract doesn't contain such a clause, I'm sorry to say, it's binding. You'd still be allowed to cancel the second contract, but they would then be able to sue you for the profit they're losing on the first contract if you do not allow them to go ahead with the work. You could wind up paying them thousands of dollars to not get your roof done.
A third option might be to see if you can get financing for the roof from a third party at similar terms. But if you want to cancel the second contract, that has to be done within the 3 days. You can't wait to see if you'll get a loan first.
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You could argue that "to be financed" doesn't require you to get financing FROM THEM and that if you're not able to get a loan elsewhere at similar terms to what they promised you, the contract fails due to a lack of financing, unless the contract is very clear that they must finance it.
They cannot require you to accept less favorable terms than the ones in the agreement. When a contract is based on a mutual mistake of fact, then it is not valid. Here, the mistake is the assumption that you'll be eligible for the promised financing at their offered terms. If the contract is ambiguous, then it's interpreted against the person who wrote it - meaning them.
Because you signed a piece of paper agreeing to the sale, and agreeing to accept financed credit terms without knowing what they are, I'm sorry to say, yes, that is binding on you. Federal law gives you three days to change your mind, but if you voluntarily sign the piece of paper, and you voluntarily decide not to cancel within the 3 days, you are liable under the contract. The law doesn't prevent people from signing contracts with bad terms. The only exception would be if they're offering usurious interest rates, which would be more than 21% interest. The fact that you didn't like the offered terms once you saw them isn't grounds to cancel unless there's something in the contract that says it is. Again, I'm sorry.
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