Business and Personal Finance Dictionary

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• COOLING-OFF RULE
  
  If you decide you arent comfortable with a contract after you sign it, cooling-off rules allow you to cancel your obligation without penalty within a certain time period, usually three days. Different kinds of transactions are governed by different cooling-off rules. For example, one federal rule allows you to cancel home improvement loans and second mortgages within three days of signing. Another gives you three days to return purchases you make at places other than a merchants usual place of business, such as at a trade show. The law governing your rights is included in the fine print on any agreement you sign.
  
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