16DBACooling-off period: person may rescind kit home contract within 5 days without penalty

16DBA Cooling-off period: person may rescind kit home contract within 5 days without penalty

16DBA Cooling-off period: person may rescind kit home contract within 5 days without penalty

(1) A person who contracts with a kit home supplier may, by notice in writing, rescind the contract—

(a) in the case of a person who has been given a copy of the signed contract—at any time before the expiration of 5 clear business days after the person is given a copy of the contract, or

(b) in the case of a person who has not been given a copy of the signed contract within 5 days after the contract has been signed—at any time before the expiration of 5 clear business days after the person becomes aware that he or she is entitled to be given a copy of the signed contract.

(2) The notice must state that the person rescinds the contract and must be given—

(a) to the kit home supplier personally, or

(b) by leaving it at the address shown in the contract as the address of the kit home supplier, or

(c) by serving it on the kit home supplier in accordance with any notice or service provision in the contract.

(3) If a notice is given in accordance with this section—

(a) the contract is taken to be rescinded from the time it was signed, but subject to the rights and obligations conferred by this section, and

(b) the kit home supplier may retain out of any money already paid to the kit home supplier under the contract the amount of any reasonable out-of-pocket expenses the kit home supplier incurred before the rescission, and

(c) the kit home supplier must refund all other money paid to the kit home supplier under the contract by (or on behalf of) the party who has rescinded the contract at or since the time the contract was made, and

(d) the party who rescinded the contract is not liable to the kit home supplier in any way for rescinding the contract.

(4) The cooling-off period may be shortened or avoided by a provision in the contract, but the provision does not take effect unless and until the other party to the contract gives the kit home supplier (or the kit home supplier’s Australian legal practitioner) a certificate that complies with subsection (5).