North Dakota Consumer Rights: Cancelling Contracts

Your Right to Cancel Contracts in North Dakota

North Dakota law provides consumers with specific rights to cancel certain types of contracts within a prescribed cooling-off period. These protections are designed to give you a second thought after high-pressure sales or impulse purchases. While not every contract comes with a cancellation right, understanding the statutes that do will help you act quickly when you need to exit an unwanted agreement. The Contract Buster website helps you navigate these laws and take the right steps.

Home Solicitation Sales: Three-Day Cooling-Off Period

Under North Dakota Century Code Section 51-18-03, consumers have a three-business-day right to cancel any home solicitation sale. A home solicitation sale is defined as a consumer transaction for goods or services with a purchase price of $25 or more, made at a residence or other location away from the seller's regular place of business. The cancellation period begins the day after the buyer signs the contract and expires at midnight of the third business day.

To cancel, you must give written notice to the seller at the address stated in the contract. You can use the cancellation form provided by the seller, but any written expression of your intent not to be bound is sufficient. The notice is effective when deposited in the mail, properly addressed and with postage prepaid. Once you cancel, the seller must refund all payments within 10 business days and return any trade-in property.

Importantly, the law requires the seller to orally inform you of your cancellation right at the time the sale is made and to give you a fully completed cancellation form. If the seller fails to provide this, your cancellation right extends to three years from the date of the sale, or until the property is fully delivered, whichever occurs first.

Health Club Contracts: Three-Day Cancellation and Special Rules

North Dakota law (NDCC 51-18-11) specifically covers health club contracts, which include agreements for the use of facilities, equipment, or services for physical exercise, body building, or weight control. Consumers have three business days to cancel a health club contract from the date the contract is signed. The cancellation notice must be in writing and delivered to the health club at the address listed in the contract.

If the health club goes out of business or relocates more than 5 miles within 15 months of the contract date, the consumer may cancel and receive a prorated refund. Refunds must be paid within 30 days. Also, health club contracts cannot require payment for more than 36 months and must clearly state the total cost.

Timeshare Contracts: Right to Cancel

North Dakota law (NDCC 47-15.1-07) grants purchasers of timeshare interests the right to cancel within 10 days after signing the contract, or within 5 days after receiving the required public offering statement, whichever occurs later. The cancellation must be in writing and hand-delivered or mailed to the developer. If the developer does not deliver the public offering statement, the cancellation right extends for up to one year.

All money paid to the developer during the cancellation period must be refunded within 30 days of cancellation. No earnest money or deposit may be retained. Timeshare sales are subject to strict disclosure requirements and any contract that does not comply with the law may be voidable.

Credit Repair Services: Three-Day Cancellation

North Dakota law requires that any contract for credit repair services (improving a consumer's credit record) must include a three-business-day cancellation right. The contract must contain a notice in boldface type stating: "You may cancel this contract at any time before midnight on the third business day after the date you signed this contract." The cancellation must be in writing and mailed or delivered to the credit repair organization.

The law also prohibits credit repair organizations from charging any fee before fully performing the promised services. If you cancel, all payments made must be returned within 10 business days.

Dating Services Contracts: Cancellation Rights

North Dakota also provides a three-business-day cooling-off period for dating service contracts (NDCC 51-18-12). These contracts are defined as any agreement for matching or introduction services. The cancellation rules are similar to home solicitation sales. The seller must provide a cancellation form and notice of rights. If you cancel, the seller must refund all payments within 30 days, except for a small fee for services already provided if the consumer used the service before canceling.

General Principles for Cancelling Contracts in North Dakota

While the above specific laws provide cancellation rights, many other contracts do not have a statutory cooling-off period. For example, gym memberships not covered by the health club law, cell phone contracts, or auto leases typically require negotiation or early termination fees. However, North Dakota's Consumer Protection Act (NDCC 51-15) prohibits deceptive and unconscionable practices, which may give you leverage if the seller misled you.

Key takeaways for any contract cancellation in North Dakota:

• Always act within the specific time frame (usually three business days) to cancel under statutory rights.
• Provide written notice via mail or hand delivery; keep proof of mailing (certified mail recommended).
• Check if the seller has property returned to you or if you must return any goods.
• If the seller fails to inform you of your rights, the cancellation period may be extended (up to three years for home solicitation sales).
• Contact the North Dakota Attorney General's office if you encounter issues with refunds or compliance.

Finally, Know Your Rights Under North Dakota Law

North Dakota provides meaningful cancellation protections for several types of consumer contracts, especially those involving high-pressure sales at home, health clubs, timeshares, credit repair, and dating services. The three-business-day cooling-off period is the most common, but timeshare contracts allow up to 10 days. If you are considering cancelling a contract in North Dakota, review the specific statute applicable to your situation. The Contract Buster website can guide you through the process, helping you draft the proper cancellation notice and understand your rights. Always document everything and act promptly.