Legal Question in Construction Law in Michigan

Signed Contract / Home Improvements

Signed contract w/Corning Basement Experts to have my basement redone. Was not verbally told that I have three business days to cancel via certified letter. I did cancel via phone after I decided I really could not afford the monthly payments and they still didn't verbally inform me of the need for certified cancel notice until about a week later. Since I did not cancel via certified letter, they are going to charge me 15% of my total contract. I am presently going through financial hardship and am struggling to meet ends. They did no work on my home, only approved credit line for monthly payments. Am I legally binded to pay this 15% ($2,800)?


Asked on 5/21/07, 1:40 pm

2 Answers from Attorneys
Regina Mullen Legal Data Services, PLC

Re: Signed Contract / Home Improvements

The terms of the contract are on the contract. If the contract says you had 3 days to deny in writing, then you're probably stuck.

Still, you might have some negotiation room here if you put up enough of a stink. Contact BBB as well as local TV reporters, etc.

Also, the liquidated damages claim has to bear some relationship to reality, so you might be able to shame them away from the legality of it. If you are low income, contact CALL (Counsel & ADvocacy Law Line).

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Answered on 5/23/07, 5:09 pm
Audra Arndt Audra A. Arndt & Associates, PLLC

Re: Signed Contract / Home Improvements

Depends on what your contract says - but they are trying to rip you off and it's unfair. Why don't you send me a copy of your contract and I will send them a letter on your behalf? This might be enough to get them to back off, because the bottom line is you did cancel in time.

my fax is 248.282.0358 and my phone is 248.644.8771.

no cost for this.

thanks.

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Answered on 5/21/07, 1:44 pm


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