CSLB Contractor's Law & Business Practice Exam

If a contractor provides a cancellation form and the homeowner sends a letter stating cancellation, is the cancellation valid?

1. No, it must be done using the form only.

2. Yes, the letter indicates cancellation intention.

3. Only if the letter is sent via certified mail.

4. Yes, but only if the contractor acknowledges receipt.

The correct answer is: Yes, the letter indicates cancellation intention.

The rationale behind the correctness of this answer lies in the principle of contract law, particularly regarding the intention of the parties involved. When a homeowner sends a letter stating their intention to cancel the contract, this action reflects their clear desire to terminate the agreement. Under the law, expressed intention to cancel a contract is valid, recognizing that the homeowner has effectively communicated their decision. In many jurisdictions, the method of communication can vary. While a contractor may provide a specific cancellation form to streamline the process, it does not negate the validity of a homeowner's written communication that clearly indicates their intention to cancel. The essential factor here is the expression of intent rather than the specific format or method used. The other choices present conditions that are either unnecessary or overly restrictive. The requirement of using the contractor's form exclusively does not account for the principle that clear intent can be communicated in multiple forms. Similarly, stipulating that the cancellation letter must be sent via certified mail introduces complications that are not typically mandated unless expressly stated in the contract. The option that suggests validity hinges on the contractor acknowledging receipt creates an additional barrier, as a clear expression of intent should suffice without needing acknowledgment. Overall, the overriding element is the homeowner's clear communication of their desire to cancel the agreement, validating