Ask an Expert
Condo Contract
Expert: J.Christa Thomas
Liliane asked:
"My husband and I entered into a contract to purchase a timeshare condo unit. We signed the agreement on July 10th, 1999. We gave a 10% deposit of $1,269.00, and agreed to pay the balance of $11,421.00, by July 17th, 1999. We also agreed to pay membership fees of $115.00 per year, and maintenance fees of $295.00 per year.
We are no longer comfortable with our decision and we would like to cancel the deal. Can we get out of this situation without experiencing any financial burden? Is there such a law in Canada that says both parties have 48 hours to make a change to such a contract? Please help!"
J.Christa Thomas answered:
"In the context of the Consumer Protection Act, an executory contract is a contract between a buyer and a seller for the purchase and sale of goods. In respect of which, delivery of the goods or payment in full of the consideration is not made at the time the contract is entered into.
Where a seller solicits, negotiates or arranges for the signing by a buyer of an executory contract at a place - other than the seller's permanent place of business - the buyer may cancel the contract. The buyer may do so by delivering a notice of cancellation in writing to the seller within 2 days after the duplicate original copy of the contract first comes into the buyer's possession.
The Consumer Protection Act provides that a notice of cancellation may be delivered personally, or sent by registered mail addressed to the person to whose name and address is shown in the contract.
The buyer is not liable for any damages in respect of such cancellation. Where a buyer cancels a contract in the foregoing manner, the seller must return any moneys received or realized in respect of the contract.
This is general information only. You should seek the help of a lawyer who can review the contract that you signed and provide you with more specific advice"
About the author
J. Christa Thomas, lawyer: Jellinek & Road, Barristers & Solicitors Christa recently joined Jellinek & Road as partner where she is continuing her business law and estates planning practices. As a business lawyer, Christa works with the owners of both start-up and mature businesses. Christa's clientele is varied, but she is particularly sensitive to the unique issues that face business owners operating on the Internet and also Aboriginal business owners.