Legal Question in Business Law in Tennessee

contract cancellation

I had a contractor give me an estimate on vinyl siding for my home. Once his presentation was complete we decided to go with this company and we signed a siding contract. On the contract under terms we checked a box for''credit''(subject to the approval of credit sales department)funded by''credit union''. We also received a Notice of Cancellation form that was valid for 3 business days to cancel without any penalties. We did not put down any monies or colateral. Our 3 days has passed and we did not cancel. We received a denial of credit in the mail from our credit union and inturn we called the original contractor to let him know we were denied. After that we found another contractor that would give us a better price that we could better afford. A few days later the credit union reconsidered and approved us for the loan. Since we did not cancel within the 3 days of the original contract are we still binded to have the work done by the orig contractor? To my knowledge they have not ordered any supplies for our work to be done.


Asked on 9/18/03, 2:24 pm

1 Answer from Attorneys
James R. Becker, Jr. Becker Law Firm

Re: contract cancellation

This is the sort of question that is very difficult to answer without the contract documents to review. In general, if the contract was made contingent on a specific event occurring (approval by the credit department) and that event did not occur, then your obligation to them ends at that time. Typically, reconsideration is not something that is usually an issue in these cases because more often than not once the denial occurs, the transaction is over.

I would recommend that you gather together your contract documents and consult with an attorney about this matter as soon as possible. It may also be advisable for you to supply notice to the contractor that you consider the initial rejection to be a termination of the contract. This could put you in a better equitable position by putting the question of whether to start work and/or incur costs on them.

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Answered on 9/18/03, 3:28 pm


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