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Lucy, Esq.
Lucy, Esq., Lawyer
Category: Consumer Protection Law
Satisfied Customers: 30383
Experience:  Lawyer
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My wife and i need a roof repair or replacement. We had a

Customer Question

My wife and i need a roof repair or replacement. We had a reputable company come out and under pressure ended up signing a contract to have the roof done. In talking with the salesman we said it would depend on if we qualified for the loan and what the terms would be. They did explain the 3 day waiting period we had. The problem is the loan information and approval did not come till several days after the 3 day period. We were not yet ready to make the 13000 dollar commitment right now. We told them we would like to just do the flat roof now and revisit the full roof later.. They were insistent that we had a binding contact and we're threatning to sue us for breech of contract. We insisted that we had not even accepted the loan yet and that we wanted to do just the flat roof. They sent 2 salesman out to talk about it and they started with the threats of breech of contact but we eventually got them to agree to doing the flat roof then the rest in the spring depending if we could still get the loan. ( My job situation is not very stable at the moment). So we ended up signing 2 separate contacts. We were pressured into signing the second contact now instead of closer to that time. They said of we didn't qualify at the time the 2nd contract would not be good. They gave us a 3 day right of refusal again. The problem is my wife and i feel like we keep getting pressured to agree to things were not ready to do. We felt we had the right to hold of on a second contact till we were ready to do it for sure. IF We decide to cancel within the 3 days can they hold us to the first contact we signed. We just want to cancel the second part of the work. We still want to do the flat roof part. They gave is just 1 3 day notice slip. I really would almost Like to cancel doing anything with this company because of the attitude and strong sales pitch but am trying to be reasonable.
JA: Because laws vary from place to place, can you tell me what state this is in?
Customer: Indiana
JA: Have you talked to a lawyer yet?
Customer: No
JA: Anything else you think the lawyer should know?
Customer: Don't think so. We just gave them a 20.00 deposit
Submitted: 1 year ago.
Category: Consumer Protection Law
Expert:  Lucy, Esq. replied 1 year ago.


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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Customer: replied 1 year ago.
The contract only has 2 boxes to check . One is cash upon completion and the other To be financed,. There is no where on the contract that it states contigent on financing. But what would happen if you could not qualify for a loan that meets you budget requirements But still qualify for a loan. We have to accept the terrms were given?. What would happen then? The second contract for the phase 2 of the roof is for may 2018 and they said if we were unable to qualify for the loan then They couldnt push the issue. I dont understand why the Law would expect you to accept a contract before you know the terms of the financing. The salesperson says they cant start the financing without a signed contract, Something doesn't add up .
Expert:  Lucy, Esq. replied 1 year ago.

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.

Customer: replied 1 year ago.
There was no promise of any terms on the contract. They took a credit application. They said the terms would be whatever our credit rating and such would indicate. 7 to 10 days later we got approved for several different scenarios. We never signed or returned the financing papers. My wife and I did not even know if we would be accepted for a loan because we are 2 years removed from Bankrupcy, Like I say the only mention of financing is the box we checked saying to be financed. Because we got approved for a loan does that mean we have to accept what they offer us.
Expert:  Lucy, Esq. replied 1 year ago.

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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