Skip to Content
The 190th General Court of the Commonwealth of Massachusetts

Section 14: Cancellation of agreement by buyer; notice; refund of deposits; reclamation of goods by seller

Section 14. A. The buyer shall have the right to cancel the retail installment sale agreement for other than the seller's breach:

(1) Until the seller has signed and delivered to the buyer, or mailed to him at his address shown on the agreement a copy of the agreement signed by the seller or a memorandum as provided in subsection F of section nine; or as provided in subsection A of section eighteen, except that such right of cancellation relative to the memorandum under subsection A of section eighteen shall be limited to the particular memorandum only, and not to preexisting valid agreements; or

(2) Which is signed by the seller, and which has been consummated by a party thereto at a place other than the address of the seller, which may be his main office or branch thereof, if the buyer, not later than midnight of the third business day following execution of the agreement, notifies the seller that he is cancelling, and such cancellation shall be effective thereupon.

B. Notice of cancellation under this section shall be given in writing to the seller at the place of business of the seller as set forth in the agreement by ordinary mail posted, by telegram sent or by delivery, not later than midnight of the third business day following execution of the agreement or the date a completed agreement signed by the seller is delivered to the buyer, whichever is later.

C. In the event of cancellation pursuant to this section the installment seller shall within ten business days of the receipt of any valid notice of cancellation (i) refund all payments made, including any down payment made under the agreement; (ii) return any goods or property traded in to the seller on account of or in contemplation of the agreement, in substantially as good condition as when received by the seller; (iii) cancel and return any copies of the agreement and any negotiable instrument signed by the buyer with a notation indicating that it has been cancelled; and (iv) take any action necessary or appropriate to terminate promptly any security interest created in connection with the agreement.

The seller shall be entitled to reclaim and the buyer shall return whenever possible or hold at the seller's disposal any goods received by the buyer under the agreement. The buyer may, at his option, comply with the instructions of the seller regarding the return shipment of the goods at the seller's expense and risk. If the buyer does make the goods available to the seller and the seller does not pick them up within twenty days of the date of the buyer's notice of cancellation, the buyer may retain or dispose of the goods without any further obligation. If the buyer fails to make the goods available to the seller, or if the buyer agrees to return the goods to the seller and fails to do so, then the buyer shall remain liable for performance of all obligations under the contract.

The seller shall within ten business days of receipt of the buyer's notice of cancellation notify the buyer whether the seller intends to repossess or to abandon any shipped or delivered goods.