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How does contract rescission work in Washington?

On Behalf of | Jun 15, 2021 | Business Law |

Contract rescission works a bit differently depending on which state you’re in. Washington has laws governing how long a person has to cancel a contract after signing it.

Depends on the type of contract

There are different rules for cancelling each type of business contract. You must check Washington’s business law statutes to know if you are able to cancel the contract. Washington allows five business days to cancel a contract with a credit repair company, for example. Debt adjustment firms have a shorter period of three business days to void the contract. Always check the law for your specific case to know for certain you’re correctly cancelling the contract.


In most cases, you’ll get a refund when you cancel a contract. How long the business has to send the refund depends on the type of market it is in. In order to get a refund, you will need to return any items that were part of the contract.

Failure to fulfill

If a party fails to honor their obligations in the contract, then the other can usually void the contract. In some situations, they can file a lawsuit against the party who didn’t fulfill their obligations. This is especially common among business-to-business contracts if losses occurred because of one party not honoring the contract.

Other situations in which a contract becomes void

If the contract requires a party to commit an illegal act, then it is automatically void. When one of the parties becomes incapable of fulfilling the terms, then the document is no longer legally binding. Evidence of fraud, undue influence or duress allows a person to cancel the contract.

In general, consumers have a few days after signing a contract to cancel it. Otherwise, there would have to be a serious issue to rescind a legally binding document. A business law attorney may offer guidance regarding a contract’s terms.