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We signed a contract on Thursday to have our daughters attend

 
PaulMJD's Avatar
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Customer Question

We signed a contract on Thursday to have our daughters attend the Event in December in Orlando. We had first met with the company selling the Event on Wednesday in a hotel and they called us back on Thursday and said we had to make a decision then. This occured in Harrisburg PA but the company cancellation notice says we need to send the notice to Deleware. We are concerned because we would like to recind this contract but in reading the fine print it states that if we do cancel within three days they still may keep a non-refundable fee of $1,000. Can they do this? Or are they required to return or full amount. We do have some urgency regarding this issue as our 3 day limit is up at the end of Saturday and we would like to send the registered notice provided that we do not loose this non-refundable fee. Please advice

 

Optional Information:
Country relating to Question: United States
State (if USA): Pennsylvania

Already Tried:
Read the contract thus far and researched this issue on the internet

Submitted: 355 days and 1 hours ago.
Category: Legal
Value: $63
Status: CLOSED
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Expert:  PaulMJD replied 355 days and 1 hours ago.

Unfortunately, you are bound by the terms of the contract and you have 3 days from signing to send the cancellation. You need to send the cancellation in the mail today postmarked today to prove you cancelled within the 3 day time frame. The effective time of your cancellation is when you put it in the mail. If you have a fax number for the company, you would send a copy of the cancellation to them by fax and put the original in the mail and that would still be an effective cancellation.

As far as a cancellation fee, if they have one in the contract and can prove those charges are reasonably incurred in the cancellation of the contract, they may charge them. If you can prove the charge is unreasonable based on the nature of the contract, then you have a right to demand them returned and if they refuse you would have to pursue them in court (or Arbitration if the contract calls for arbitration of disputes).


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Customer replied 355 days and 1 hours ago.

It is not a cancellation fee but rather a registration fee - can they charge a registration fee that is non-refundable even if cancelled in this three day period

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Expert:  PaulMJD replied 355 days and 1 hours ago.

I am afraid that "non-refundable" in the contract means just that and they can indeed keep that money even if you have a right to cancel the contract in 3 days, as you signed a contract agreeing to that.

Customer replied 355 days and 1 hours ago.

So you are telling me that a contract from a business can superseed PA law that states in a situation in which a business sells a contract from a hotel that we have three days to recind and get a full refund - I thought state law trumps superceeds a business contract

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Expert:  PaulMJD replied 355 days and 1 hours ago.

You also need to read that contract to see what state law applies, since they will have a choice of law provision. What I am saying is if you MISS the 3 days the fee becomes non-refundable under the 3 day right of rescission.

Customer replied 355 days and 1 hours ago.

I do not think you have answer my question - we will have complied with the three day notice - but even if that is the case can they hold the registration fee - the jourisdiction is Loudoun County Viginia

Accepted Answer

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Expert:  PaulMJD replied 355 days and 1 hours ago.

Now, you have a completely different situation, so PA law does not apply to your contract.

Under VA law, there IS no automatic 3 day right of rescission, whatever rescission rights are granted are granted by contract. If this contract is governed by VA law, then it is governed by whatever the terms of the contract you signed are and as such, if this deposit/fee was stated as non-refundable, then you are bound by the terms of that contract I am afraid and this means the contract would be heard in any court under the law of VA.

Expert TypeAttorney
Category: Legal
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Accepts: 27242
Answered: 4/21/2012

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