Understanding "cooling-off period" requirements

The success of your Gainesville business may depend largely on the contractual agreements that you enter into with your customers. What are you to do, then, when one such customer tries to cancel its contract with you citing a "cooling-off period." Many come to us here at The Roberts Law Firm, P.C. in such situations wondering if they are indeed required to honor customers' requests in such situations. The answer depends on the nature of your business. 

A "cooling-off period" is meant to describe the window given to customers following purchases or the completion of contractual agreements to evaluate what they have done and determine if it truly is in their best interests. If one ultimately changes its mind, it can take advantage of the cooling-off period provision to walk away from its contract with you without having to incur any penalties for breach of contract. Typically, cooling-off periods are purposefully brief (in Georgia, the law only allows them to extend for three days from the date a deal was made. 

Yet not every client or customer is entitled to a cooling-off period. According to the Consumer Protection Division of the Georgia Department of Law under a cooling-off period provision if: 

  • The contract involves the sale or lease of goods and/or services meant for personal or household use
  • The contract is in writing and signed by all parties 
  • The financial obligations associated with the contract total more than $25
  • The contract was entered into in a place that is not your place of business

The location provision of this requirement covers contracts made during home visits or business conferences. All of the aforementioned requirements must be met for you to have to honor a cooling-off period. More information on dealing with business contracts can be found here on our site. 

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The Roberts Law Firm, P.C.
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Gainesville, GA 30501

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