Right of Rescission

WHEREAS, on ________________, ________________ entered into an agreement with ____________________, which, pursuant to applicable law, is subject to a right of rescission by ________________; and

WHEREAS, ________________ has elected to exercise this right of rescission;

NOW THEREFORE, notice is hereby given to __________ that ________________ hereby rescinds the aforementioned agreement for the purchase of _________________________________________.

This notice of rescission has been transmitted via: __________________ to ___________________ on __________________, 20 at ________.

Rescinder
Faxed to: _______________.

How to Use This Sample Format:

Right of Rescission

This review list is provided to inform you of the purpose and proper use of this document and to assist in its preparation.

The right of rescission is a statutory right granted under various state laws, allowing consumers to cancel certain transactions within a specified period—typically three (3) business days following execution of the agreement. This consumer protection measure is intended to provide relief in situations where a purchaser may have been subject to high-pressure sales tactics or has second thoughts about a significant purchase.

It is important to understand that the application of the right to rescind may be subject to interpretation based on the specific facts and circumstances surrounding the transaction. For instance, if an item is purchased under conditions that clearly indicate “final sale” and without coercion (e.g., in a retail setting or private garage sale), the purchaser may not be entitled to rescind. Conversely, purchases made in a commercial context, such as buying an automobile from a dealership, are more likely to be successfully rescinded using this notice.

This document is most effective in transactions between consumers and businesses. In private-party sales, rescission rights are more limited and enforcement is less certain. Nevertheless, submitting a rescission notice can serve as formal notification to the seller and may improve the purchaser’s position in negotiating cancellation of the transaction.

Prompt action is critical. It is advisable to fax the notice of rescission and follow up by mailing or sending it via FedEx, particularly in the case of significant purchases, to demonstrate earnest intent and to ensure timely delivery.

In conclusion, while the rescission process can be unpredictable and potentially contentious, exercising your rescission rights involves little risk. At worst, you may be required to fulfill the original terms of the transaction. Thus, issuing a notice of rescission is a prudent step when seeking to cancel an unfavorable agreement.

Be sure to retain multiple copies of the notice. Send the notice via fax, mail, and/or courier (such as FedEx) to the seller, and file a copy with your transaction records.