Legal Question in Business Law in New York

Cancel New Contract Immediately After Signing

I heard that there is a 3-day clause in New York State which states that any contract can be made null and void if cancelled within 3 days time.

I signed a registration form, agreeing to pay for ballet lessons for my daughter from now until June, regardless of whether my daughter attends. I interpreted that part as paying for classes each month, whether my daughter misses a class or two due to illness, etc.

Upon the first class, the day I signed the contract, my daughter returned from the class extremely unhappy and I called the dance studio that night and cancelled the contract verbally within hours of signing it, only to receive an argument that I cannot cancel. Had this woman brought my daughter in for an evaluation, she would have then been able to determine that she is not up to par with the rest of the class and should never have accepted her in the first place, but she instead chose to insult her in front of the class, so I immediately cancelled the agreement and put a stop-payment on the check.

Now, I am most likely heading for small claims court because of the demand for payment of the entire term.

Who is right and who will win?


Asked on 1/10/03, 3:27 pm

1 Answer from Attorneys
John Friedman Law Office of John K. Friedman

Re: Cancel New Contract Immediately After Signing

The "3-day rule" applies only to contracts resulting from door-to-door sales I believe; it is not applicable to other types of contracts generally.

As to cancellation rights, etc., look to the body of the contract: the contract controls the relationship as a form of "private" law, if you will. However, if there was what is termed "fraud in the inducement" by the offeror (i.e. if the teacher said "beginners welcome" as to your daughter and then, in class, that was not the case) then the contract may be void for failing to reflect a meeting of the minds.

Review the contract first, and outline any statements that might have been made by the teacher in the "sales" phase of your relationship that might have been contradicted by the actual circumstances of your child's tenure in the class.

Good luck.

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Answered on 1/10/03, 3:54 pm


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