Legal Question in Construction Law in California

Re: Canceling a contract

As Mr. Whipple stated, "Generally, someone who signs a contract is presumed to have read it and know its contents. The contract is valid as it stands, but maybe you can rescind it." The first step would be to throughly review the contract. This contract is considered a "home solicitation contract" and governed by Business and Professions Code Sec 7159 et. seq. It is generally subject to a 3 days right to cancel under Civil Code 1689.5. The contractor and contract must have certain requirements under

B & P 7159 including a requirement in writing that you a have three day right to cancel the contract by sending written notice to the contractor by the 3rd business day following when you signed the contract. If this written notice was not given as required then you probably may rescind the contract.

If you have not provided any money to the contractor do not do so. In addition I suggest that you write to the contractor and notify him that 1) the contract is not valid because he fraudulently induced you to sign it; 2) you rescind the contract; and 3) you will consider him a trespasser if he comes onto your property. Hopefully this will provide enough leverage where the contractor will simply go his own way.

In addition you may be able to recover attorney fees and statutory damages if he does in fact sue you. Any person who is induced to contract for a work of improvement, including but not limited to a home improvement, in reliance on false or fraudulent representations or false statements knowingly made, may sue and recover from the contractor or solicitor a penalty of $ 500, plus reasonable attorney's fees, in addition to any damages sustained by reason of the statements or representations made by the contractor or solicitor (Bus. & Prof. Code � 7160.)

I hope this helps and thank you for your question.

Re: Canceling a contract

Generally, someone who signs a contract is presumed to have read it and know its contents. The contract is valid as it stands, but maybe you can rescind it, not because it contains an any-time rescission clause, but because the contract may have been induced by fraud.

I say "may have been" induced by fraud because, although you probably feel there's no question that a fraud has been perpetrated on you, pleading and proving fraud sufficient to get a court to rescind a contract requires meeting several tough requirements.

Establishing fraudulent misrepresentation in court requires you to plead and prove that a material mis-statement of fact was made; that the speaker knew or should have known of the falsity; that you relied upon the mis-statement; that your reliance was reasonable; and that damage to you has resulted.

Perhaps the toughest of these requirements would be establishing that your reliance upon the fraudulent statement that the contract contains an any-time rescission provision was reasonable. The judge or jury might find that your reliance was unreasonable because you could have read the contract, or should have known that contracts of this sort are unlikely to permit rescission anytime.

In the real world, your best bet may be to tell the roofer emphatically that you don't want any work done, if he tries to do work you'll consider him a trespasser, and that you will not pay him. You will (perhaps) be breaching the contract, but his damages will be so small it won't be worth his while to sue you.

Also, does he have a license? If not, he is breaking the law by signing people to contracts and the contract is void for that reason.

Re: Canceling a contract

This type of contract is subject to cancellation up to 3 business days after your have been told, IN WRITING, that you have the right to cancel. The contractor must give you a form, already filled in, that you merely sigh and send to the Contractor. In any event, if the work has not started, following Mr. Whipple's advice make a lot of sense.