Legal Question in Real Estate Law in California

My parents have signed a, "contract" with a company who claims they will take ownership of my parents' timeshare for an outrageously high fee. This was initiated by a mail flyer and I believe a sale finalized in a hotel presentation.

A few things I've noticed about this, "contract":

1. There are two pages. Page 1 has a handwritten "Pg 1 of 2" and a page 2 has a typed, "Page 2 of 2".

2. "Page 2 of 2" has paragraphs 8 through 19, but there is no paragraph 1 through 7 on "Pg 1 of 2" or anywhere.

3. The verbiage on "Page 2 of 2", refers to itself as a, "Contract/Agreement", but the handwritten, "Pg 1 of 2" is titled at the top, "EQUITY TRANSFER RECEIPT".

4. Both pages were signed in the state of California, though, "Page 2 of 2" states "This Contract shall be governed, both procedurally and substantively, by the laws of the State of Delaware. Jurisdiction and venue for any action, court proceeding, arbitration, or legal action of any kind or nature shall vest exclusively with the New Castle County Court of Chancery, Wilmington, DE." Both pages have the company name with a Delaware address at the top.

5. The company did not provide a "completed form in duplicate captioned A Notice of Cancellation" as required by Delaware, or any information about the right to cancel anything, transaction, contract, agreement, etc.

Here is my question:

Are my parents legally bound to follow through with this, "contract/agreement" and pay this company without the ability to cancel?

Here are my concerns considering what I've mentioned above:

Is "Page 2 of 2" part of an incomplete contract, thereby not legally binding?

Is this really even a legally binding contract or is it unenforceable especially considering it appears incomplete?

Considering that there is wording that claims my parents received all documents, and it appears an actual first page of the printed "Page 2 of 2" is missing (paragraphs 1 through 7) does this not invalidate these two pages as a legally binding contract/agreement and free my parents of being liable to being charged with the amount on "Pg 1 of 2"?

Despite the verbiage in, "Page 2 of 2", since this was signed in the State of California, wouldn't its law supersede any statement in the signed documents'?

Taking all of this into account, can my parents effectively "cancel" this so-called "contract" because it really is NOT one, by simply ignoring it, or do they have to go to court to prove its undue influence, unenforceability and illegality?

Where would they go to court or "binding arbitration", California or Delaware?

If this is not being considered an enforceable contract/agreement, would going to arbitration as stated on "Page 2 of 2" constitute assent to these two pages as binding?

Does any of the following found below apply?

http://www.dca.ca.gov/publications/legal_guides/k-6.shtml

I

SPECIFIC STATUTORY

CANCELLATION RIGHTS

M

Mail/Telephone Sales (when order has not been filled) -- 30 day cancellation period (B&P 17538(a), 16 CFR Part 435).

II

GENERAL CONTRACT

CANCELLATION RIGHTS

A. Rescission for Fraud, Mistake, Undue Influence, Breach, Illegality

(1) No real consent. If the buyer's consent to a contract was induced by the seller's fraud, or was given by mistake, or under duress, menace or undue influence, the buyer can rescind the contract (Civ. Code � 1689(b)).

(2) Failure of anticipated exchange through fault. A buyer has a right to rescind a contract when the exchange which the buyer anticipated receiving from the seller "fails, in whole or in part, through the fault" of the seller (Civ. Code � 1689(b)(2)).

(3) Promised exchange void for any reason. The buyer has a right to rescind a contract when the exchange which the seller promised to the buyer "becomes entirely void from any cause" (Civ. Code � 1689(b)(3)).

(4) Failure of bargained exchange before being rendered. The buyer has a right to rescind a contract when the exchange which the buyer bargained to receive from the seller "fails in a material respect from any cause" before it is rendered to the buyer (Civ. Code � 1689(b)(4)).

(5) Contract unlawful. The buyer has a right to rescind a contract when the contract "is unlawful for causes which do not appear in its terms or conditions, and the parties are not equally at fault" (Civ. Code � 1689(b)(5)).

(6) Public interest prejudiced. The buyer has a right to rescind a contract if "the public interest will be prejudiced by permitting the contract to stand" (Civ. Code � 1689(b)(6)).

B. Fraudulently Executed Contract Void.

If a party's consent to a purported contract is altogether absent because it was obtained through fraud -- for example, if the consumer was not aware that the document was a contract -- the purported contract is altogether void. (See Jones v. Adams Financial Services (1999) 71 Cal.App.4th 831, 839 [84 Cal.Rptr.2d 151, 157].)

C. Unconscionable Contract Unenforceable.

(1) Court's power to refuse to enforce. A court has the power to refuse to enforce a contract or a clause in a contract that is unconscionable when made (Civ. Code � 1670.5(a))

(2) Evidence of context admissible. To enable the court to decide whether a contract or clause is unconscionable, the parties may present evidence of the setting, purpose and effect of the contract (Civ. Code � 1670.5(b)).

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