A contract includes a three-day cancellation form. If the buyer cancels by sending a letter stating he will not proceed, is the cancellation effective?

A contract includes a three-day cancellation form. If the buyer cancels by sending a letter stating he will not proceed, is the cancellation effective?

• A. No, cancellation is only valid if the three-day form is used
• B. Yes, but only if delivered in person
• C. Yes, because the letter shows intent not to be bound
• D. No, cancellation is not valid by mail

Answer: (C)

The key idea is that three-day cancellation rights hinge on clear, timely notice of intent to back out, not on using a specific form. The purpose of the cancellation period is to give the consumer a safe decision window, and any written notice that plainly communicates the decision to not proceed within that window satisfies the requirement. A letter stating “I will not proceed” within the three-day period shows unequivocal intent to cancel, so the cancellation is effective. The contract is terminated with respect to forming a binding agreement, and the seller’s obligation to refund any payments proceeds as required by the applicable law. The three-day form is just a convenient method to provide notice; what matters is the timely, clear expression of cancellation and the consumer’s intent not to be bound.