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

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Page URL
Modern Language Association (MLA):
Cooling-Off Rule. Payroll & Accounting Heaven Ltd. September 22, 2021
Chicago Manual of Style (CMS):
Cooling-Off Rule. Payroll & Accounting Heaven Ltd. (accessed: September 22, 2021).
American Psychological Association (APA):
Cooling-Off Rule. Retrieved September 22, 2021, from website:

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.