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Cancellation Clause - Withdrawal from the contract

Posted on: 09th Apr, 2004 05:27 pm
A Cancellation Clause is a provision in a lease or contract document that states under what conditions the parties involved can withdraw from the contract. The contract can be related to a mortgage deal or any insurance policy.

In the field of insurance, the notice with the cancellation clause is provided to the insured after the termination of one policy and the renewal of another. It may even be issued if the insured has not paid the premiums. A cancellation notice can also be provided for a current policy when both the parties decide upon renegotiating the terms of the policy. Cancellation clause is also valid in case of cancellation of insurance on home or office.

Cancellation clause and its affect on mortgage foreclosure:

  • In case a foreclosure is cancelled, the borrower shall continue to pay for the mortgage provided the lender does not demand the payment in full due to such an event.


  • Even if a foreclosure is called off, the cancellation clause is such that it will not affect the commencement of another foreclosure in future.
does a contract require a right of rescisison clause
Posted on: 10th Feb, 2010 10:01 pm
Joe... as far as I know your contract will have the clause of right to rescission.
Posted on: 11th Feb, 2010 11:41 pm
joe, if you are speaking of a real estate purchase contract, there'd be no right of rescission in such a contract, unless one was specifically modified to contain one. when purchasing real estate, cancelling isn't really an option, unless you've been denied by a lender to whom you applied for financing.
Posted on: 12th Feb, 2010 08:43 am
Yesterday I gave an apt complex a check for $350 to hold an apt for me, today I found an apt. I like better, can I get that $350 back since it has only been 24 hours?
Posted on: 08th Oct, 2010 12:14 pm
Undoubtedly Tom, that will depend on whatever you may have signed with that apartment complex. Nonetheless, you ought to be able to retrieve your money without much issue. And, frankly, whether you signed anything or not, you should have no trouble. If this is an upright business, they'll be happy - presumably - to refund your money.
Posted on: 08th Oct, 2010 12:39 pm
we sold our house 8 months ago and now the buyer is trying to rescind the contract claiming that he has proof that we were fraudulant in concealing pest/termite and structural damages. There is no truth to that claim. What, if anything, should I worry about and what should I do?
Posted on: 14th Jan, 2011 03:24 pm
Hi sammy,

You should have a word with your real estate attorney in order to find out what you need to do in this matter.

Thanks
Posted on: 14th Jan, 2011 10:44 pm
That's a good first step, James.
Posted on: 25th Jan, 2011 01:40 pm
My daughter signed a lease with a friend on July 30 for a yr. They moved into the Apt Aug 1. Now a couple weeks later she is afraid in the house. She has put a front door lock on her bedroom. What if anything can she do legally to get out of that lease?
Posted on: 18th Aug, 2011 01:21 pm
Hi Becky,

If she leaves the house and beaks the lease, the landlord can take legal actions against her. It will be better if she could negotiate with the landlord and he allows her to cancel the lease.

Thanks
Posted on: 18th Aug, 2011 10:45 pm
Indeed, having a conversation with her friend is far more efficient that simply breaking a lease. What is causing the fear? Is this her first experience at living alone? Not that it matters all that much...a compassionate individual - we hope the friend is one - will be understanding and simply find a new tenant.
Posted on: 21st Aug, 2011 03:12 pm
In North Carolina how many days does a buyer have the option to cancel the contract for the purchase of a home (real estate) and when was this law passed? Under the previous NC law how many days did the buyer have to canel the contract for the purchase of real estate?
Posted on: 31st May, 2012 11:07 am
Hi John!

Welcome to forums!

As far as I know, you will get 3 days of rescission period. If you wish to cancel the deal, you will have to do it within these 3 days. If you cancel the deal within these 3 days, then you will be able to get the refund of the money you have paid.

Feel free to ask if you've further queries.

Sussane
Posted on: 31st May, 2012 11:07 pm
Are there time frame to withdraw a contract to my lawyer?
Posted on: 23rd Jan, 2013 07:50 pm
Are there time frame to withdraw a contract to my lawyer?
Posted on: 23rd Jan, 2013 07:50 pm
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