How to Break a Contract in Three Business Days

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A contract between a seller and buyer is a legally binding document. In most cases the contract can be broken only at the risk of legal action against the party who breaks the contract. In some cases, a contract can be broken within three days. This is called the three-day right of rescission law, but this law can be invoked only in specific situations. Understanding the circumstances under which the law applies, you can legally break a contract within three days.

Examine the specifics of your state's criteria for the three-day right of rescission law. There is a misconception that this law entitles consumers to legally break any new contract within three days. This isn't the case. This particular law varies by state, but the specifics are generally the same. The three-day right to cancel doesn't apply to purchases under $25 and normally doesn't apply if a contract is signed or entered into at the seller's actual place of business. Contracts involving an attorney or broker typically do not apply, as well as sales where negotiations began at the seller's place of business and ended elsewhere.

Ask for a right of cancellation form if you are eligible or the three-day right of rescission law. Under the law, a salesperson (or other agent) has to tell you about your right of cancellation at the time a contract is entered into. The seller or agent must supply you with two copies of this form.

Sign and date the form marked "notice of cancellation" if you want to cancel the contract. Mail it back to the seller (for a full refund, if applicable, the form must be postmarked no later than midnight of the third business day of the initial contract date to be valid).

Call or write to the seller if no forms were provided. State in writing that you wish to invoke the three-day rescission law and request cancellation forms. The seller has violated the law by not giving you forms, which means you will have extra time (so long as you notify the seller in writing within three days). The amount of time varies by state and is dependent upon when you receive the proper forms.

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