Cooling-Off Rule

Business, Legal & Accounting Glossary

Definition: Cooling-Off Rule




What is the dictionary definition of Cooling-Off Rule?

Dictionary Definition


A rule that allows you to cancel a contract within a specified time period (typically three days) after signing it. In the US, federal cooling-off rules apply this three-day grace period to sales made door-to-door and anywhere other than a seller’s normal place of business, such as at a trade show. Another federal cooling-off rule lets you cancel a home improvement loan or second mortgage within three days of signing. Various states have cooling-off rules that sometimes apply even longer cancellation periods to specific types of sales, such as dancing lessons and timeshares.


Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/cooling-off-rule/
Modern Language Association (MLA):
Cooling-Off Rule. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. September 22, 2021 https://payrollheaven.com/define/cooling-off-rule/.
Chicago Manual of Style (CMS):
Cooling-Off Rule. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/cooling-off-rule/ (accessed: September 22, 2021).
American Psychological Association (APA):
Cooling-Off Rule. PayrollHeaven.com. Retrieved September 22, 2021, from PayrollHeaven.com website: https://payrollheaven.com/define/cooling-off-rule/

Definition Sources


Definitions for Cooling-Off Rule are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 22nd April, 2020 | 0 Views.