Derek is buying a time share unit at a resort on Maui. He signs the purchase contract on Monday and receives all required disclosure documents on Wednesday. Under HRS Chapter 467B, what is the last day Derek can rescind the purchase contract without penalty?
Correct Answer
D) The following Wednesday, seven calendar days after receiving the disclosure documents
Under HRS Chapter 467B, a time share purchaser has seven days to rescind after signing the purchase contract OR after receiving the required disclosure documents, whichever is later. Since Derek signed on Monday but did not receive disclosures until Wednesday, the seven-day period runs from Wednesday (the later event), making the following Wednesday the last day to rescind.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A breach of contract occurs when one party fails to perform their obligations under the contract without a legal excuse. The non-breaching party is entitled to legal remedies including damages, specific performance, or contract rescission.
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
Contingencies are conditions written into a real estate contract that must be met before the transaction can close. If a contingency is not satisfied, the buyer can typically cancel the contract without penalty.
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