Contract template

Notice of cancellation form template

A notice of cancellation is the form a seller must give a buyer after many sales made at the buyer's home or at a temporary location, explaining the buyer's right to cancel within three business days. This template follows the wording of the FTC's Cooling-Off Rule and adds a receipt the buyer signs. Read it below, then open it in SignMaster and send it with your contract.

Updated November 5, 2026 · 3 min read

The contract

Gray blanks are yours to fill in before you send. Each signer fills in the blanks in their color.

  • You, before sending
  • Buyer
  • Seller

Notice of Cancellation

NOTICE OF CANCELLATION

Date of transaction (Date of transaction)

You may CANCEL this transaction, without any Penalty or Obligation, within THREE BUSINESS DAYS from the above date.

If you cancel, any property traded in, any payments made by you under the contract or sale, and any negotiable instrument executed by you will be returned within TEN BUSINESS DAYS following receipt by the seller of your cancellation notice, and any security interest arising out of the transaction will be canceled.

If you cancel, you must make available to the seller at your residence, in substantially as good condition as when received, any goods delivered to you under this contract or sale, or you may, if you wish, comply with the instructions of the seller regarding the return shipment of the goods at the seller's expense and risk.

If you do make the goods available to the seller and the seller does not pick them up within 20 days of the date of your Notice of Cancellation, you may retain or dispose of the goods without any further obligation. If you fail to make the goods available to the seller, or if you agree to return the goods to the seller and fail to do so, then you remain liable for performance of all obligations under the contract.

To cancel this transaction, mail or deliver a signed and dated copy of this cancellation notice, or any other written notice, to Seller name, at Seller business address, NOT LATER THAN MIDNIGHT OF Cancellation deadline.

The seller also accepts cancellation by email at: Cancellation email

To cancel, complete this part only if you decide to cancel

I HEREBY CANCEL THIS TRANSACTION.

Date: ____________________ Buyer's signature: ______________________________

To cancel, print this page, sign and date the lines above and mail or deliver it, or send any other written notice that you cancel, to the address above before the deadline. Signing the receipt below does not cancel the transaction.

Buyer's receipt (signing does not cancel the transaction)

Buyer: Buyer name Address of the sale: Sale address

Description of the goods or services sold: Goods or services sold. Contract date or number: Contract reference.

By signing below, the buyer confirms that the seller told them about their right to cancel at the time of the sale, and that they have received this Notice of Cancellation, completed with the date of the transaction, the seller's name and address, and the cancellation deadline. The seller will also give the buyer two printed copies on request.

I received this Notice of Cancellation and was told about my right to cancel at the time of the sale.

By signing below, the seller confirms that it explained the buyer's right to cancel orally at the time of the sale, in the language of the sales presentation, and will honor a cancellation sent by the deadline above.

Buyer (receipt only)

SignaturePrinted nameDate signed

Seller

SignaturePrinted nameDate signed
Use this template

Opens it in SignMaster as a template you can edit and send.

A starting point, not legal advice. Have a lawyer review it for your state and situation. Follows the notice wording in the FTC Cooling-Off Rule (16 CFR 429.1).

On this page
  1. The contract
  2. When you have to give one
  3. What the notice says
  4. Mistakes that void the sale or the deadline
  5. Sending the notice with SignMaster
  6. Questions

When you have to give one

Under the FTC's three-day right to cancel, a seller who makes a sale of $25 or more at the buyer's home, or $130 or more at a temporary location like a hotel room or a fairground booth, must tell the buyer about the right orally, put a cancellation statement in the contract next to the buyer's signature, and give the buyer two copies of a completed notice of cancellation. Roofers, solar and window companies, home security dealers and anyone selling at the kitchen table run into it daily.

The rule doesn't cover every sale. Real estate, insurance and securities are excluded, as are sales made entirely online, by mail or by phone, and some emergency repairs the buyer requests and waives in their own handwriting. Many states add their own home solicitation laws with longer periods or extra wording, so check yours as well.

What the notice says

  • The date of the sale, and that the buyer may cancel without penalty within three business days of it.
  • Refunds: payments, trade-ins and signed notes are returned within 10 business days of the seller receiving the cancellation.
  • Goods already delivered: the buyer makes them available in as good condition as received, and keeps them if the seller doesn't collect within 20 days.
  • How to cancel: mail or deliver a signed and dated copy of the notice, or any other written notice, to the seller's address by midnight of the deadline.
  • The cancellation lines: "I hereby cancel this transaction," with a date and signature line the buyer fills in only if they cancel.

Mistakes that void the sale or the deadline

  • Leaving the deadline blank. Count three business days: Saturdays count, Sundays and federal holidays don't.
  • Presenting in Spanish and handing over an English notice. The rule requires the notice in the same language as the sales presentation.
  • Starting work during the three days without a valid emergency waiver. If the buyer cancels, you may not be able to charge for the work already done.
  • Treating your e-signature as the buyer's cancellation. The cancellation lines stay blank when the buyer signs the receipt.

Paper copies may still be the safe choice

The Cooling-Off Rule describes a notice attached to the contract and easily detached. Delivering it electronically also brings in the ESIGN Act's consumer consent rules. SignMaster asks every signer to agree to electronic records, but whether that meets those rules for a required notice is a question for your lawyer. Many sellers leave two printed copies as well.

Sending the notice with SignMaster

  1. 1

    Open the form

    Choose Use this template above. It's saved with two signers: the buyer, who signs the receipt, and your company.

  2. 2

    Put it in the same envelope as the contract

    Start an envelope with your sales contract and add this notice as a second document, so the buyer signs both in one sitting.

  3. 3

    Fill in the dates and your address

    In the gray blanks, enter the date of the transaction, your business name and address, and the cancellation deadline you counted.

  4. 4

    Sign at the table

    Use Sign in person to have the buyer sign the contract and the receipt. Everyone gets the signed PDF by email, and in the iPhone and iPad app you can print copies on the spot.

Bulk send doesn't suit this form: the rule is about sales made face to face, so the notice goes out with each contract at the moment of sale. Instead, keep your contract and this notice together in one template, so no sale made at a door leaves without it.

Questions? Answers.

Does the 3-day right to cancel include weekends?

Saturdays count as business days under the FTC rule; Sundays and federal holidays don't. A sale on a Friday can usually be canceled until midnight on the following Tuesday, unless a holiday falls in between.

Can the buyer cancel by email?

The FTC wording says to mail or deliver the notice or any other written notice. Many sellers also accept email to make canceling easy. If you do, put your email address in the notice next to your mailing address.

Does the buyer sign the notice of cancellation?

Only to cancel. In this template the buyer signs a receipt saying they got the notice; the cancellation lines stay blank unless they decide to cancel.

Sources

  1. FTC, Buyer's Remorse: The FTC's Cooling-Off Rule May Help (16 CFR Part 429) · consumer.ftc.gov
  2. 16 CFR Part 429, rule concerning cooling-off period for sales made at homes or at certain other locations (eCFR) · ecfr.gov
  3. 15 U.S.C. § 7001, ESIGN Act general rule and consumer consent (govinfo) · govinfo.gov

Your next contract,
signed today.

Start free in any browser and send your first document.