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What happens if a purchaser exercises their cooling-off rights during the 2-day period in SA?

Correct Answer

B) They may be liable to pay a prescribed penalty (up to $100 or a prescribed amount) but the contract is void

When a purchaser exercises their cooling-off right in SA, the contract is void but the purchaser may be liable for a prescribed penalty amount. The bulk of any deposit must be refunded.

Answer Options
A
They forfeit the entire deposit
B
They may be liable to pay a prescribed penalty (up to $100 or a prescribed amount) but the contract is void
C
The contract continues but the price is reduced by 5%
D
The vendor can refuse to accept the cooling-off and enforce the contract

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Related Topics & Key Terms

Key Terms:

cooling-off exercisecontract voidprescribed penalty
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