Investopedia

Continue to Site »

Cooling-Off Rule

Filed Under » ,
Dictionary Says

Definition of 'Cooling-Off Rule'

A term referring to law pertaining to newly-entered contracts that allows both sides of the party a period of time (after the contract has been signed) to release themselves from any obligations without penalty.
Investopedia Says

Investopedia explains 'Cooling-Off Rule'

Different types of transactions will have different cooling-off rules, and not all types of contracts have such provisions. Typically this period will be three days; however, it is imperative that all the rules and regulations listed in the fine print are read before entry into a contract.

In the U.S., federal law usually requires a three-day penalty-free period for the rescission/withdrawal from any refinancing contract associated with the primary residence.

Articles Of Interest

  1.

    Understanding Your Insurance Contract

    Learn how to read one of the most important documents you own.

  2. Extended Warranties: Should You Take The Bait?

    Avoid shelling out for these policies and you could save hundreds of dollars.

  3. Exploring Advanced Insurance Contract Fundamentals

    Understanding your contract can help you protect our family's financial security.

  4. Do You Dare Sue Your Broker?

    A financial damages claim is not for the fainthearted, but it may be worth it in the end.

  5. What To Do When You're Left Out Of A Will

    Discover the legal steps you can take if you are left out of a will and if fighting is worth the effort.

  6. Fighting Back Against Collection Lawsuits

    There are still options available to those being pursued by a creditor.

  7. 5 Free Or Low-Cost Legal Services

    Legal fees have never been more expensive. Here are some ways for you to save on legal fees while still getting reliable advice.

  8. How quickly should my financial advisor sell a stock that I have asked him or her to sell for me?

    Financial advisors and planners have fiduciary responsibilities to their investors. They owe their investors a high degree of loyalty as they are in positions of trust and confidence. Execution ...

  9. Easy Ways To Cut Rental Costs

    If rent payments are crippling your finances, then read on to learn how to save your money.

  10. The End Of Consumer Arbitration

    In light of recent court cases, arbitration may be on its way out.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Validation Period

    The amount of time necessary for the premium on an insurance policy to cover the commissions, the cost of investigation, medical exams and other expenses associated with the issuance of the policy.

  2. Winner's Curse

    Because of incomplete information, emotions or any other number of factors regarding the item being auctioned, bidders can have a difficult time determining the item's intrinsic value. As a result, the largest overestimation of an item's value ends up winning the auction.

  3. Glocalization

    A combination of the words "globalization" and "localization" used to describe a product or service that is developed and distributed globally, but is also fashioned to accommodate the user or consumer in a local market.

  4. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  5. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  6. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.
Trading Center