change-of-mindThe basic legal rule in all states is that once all parties have agreed to the terms of a contract, it’s binding on both of them.   If one side makes an offer that is complete and clear as to the terms, then once the other side agrees, he or she can’t back out of the deal without having to pay damages resulting from the breach of the contract.

There are more exceptions, however, to this rule than you can shake a stick at, (or, possibly, cover in a textbook) so never assume there is no way out before calling us to discuss your situation.   One exception is that a few, specific types of contracts may be cancelled within a certain number of days after the contract is signed. Some of the State laws are:   1. Door to door sales: Three (3) business day cancellation period. (NMSA 57-12-21) 2. Time shares: Seven (7) business day cancellation period. (NMSA 47-11-4) 3. Condominium sales: Seven (7) day cancellation period. (NMSA 47-7D-8) 4. Temporary locations: Three (3) business day cancellation period.  Sales with a purchase price of twenty-five dollars ($25.00) or more, where the buyer’s agreement or offer to purchase is made at a place other than the place of business of the seller. (NMSA 57-12-21 B(3)). 5. Telephone initiated sales: Three (3) days after buyer has been informed of his right to cancel and has been given a copy of the Notice of Cancellation. (NMSA 57-12-21 B(3)).   (Notice that a contract to buy a car is not one of the listed exceptions. Car dealers rely on this when they talk potential buyers into signing a contract based on puffed-up representations and the excitement of getting a new car.)   Even exceptions have exceptions, so always call before assuming a contract may be cancelled. If you do cancel, do so in writing, keep a copy, and follow any instructions given in the contract.