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Cancellation notice for electronic contracts
April 18, 2023
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Cancellation notice for electronic contracts
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Ken
????????????We are using Docusign for electronic contract execution.??How do we use the cancellation notice???Your directions call for starting with 3 copies, having the subscriber initial one copy and we take one copy [to prove we gave it] and leave the subscriber with two copies which is required by law.??How does it work when electronic contracts are used?
Bob
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Response
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????????????When you use the electronic format for contract execution you still have to use the Cancellation Notice, but it's used a bit differently.??Using the electronic format requires that the consumer [residential customer] be presented with and required to sign a Disclosure and Consent to Electronic Communication.??This overrides the state requirements for actual paper to be presented to the consumer.??K&K does have a?Standard Disclosure and Consent Form?to be used when the electronic format is used.??I believe Docusign does provide a similar form; not sure about other companies that offer electronic formats.??When using electronic contracts the consumer gets only one copy of the Cancellation Form
????????????Here is the order of presentment for the electronic format:?
Disclosure and Consent form
Contract:?Residential All in One?[this will contain the 3 day notice of cancellation; or 7 when required]
Schedule of Equipment and Services
Cancellation Form
Disclaimer Notice
????????????The electronic format must permit the consumer to cancel electronically as well as sending the notice as the statute may require.?
????????????Be sure your electronic format permits the customer to retrieve copies of all signed papers, and you should be able to retrieve these papers as well.??In fact, copying these contracts as presented and signed by the consumer should probably be stored on your servers and not just stored by the company you use for electronic contracts.??You can of course do electronic contracts "in house".??Adobe Esign, used by my office, seems to be an in house process and we get the fully executed document to download on K&K computers.
????????????Just a reminder:??Do not forget to present the cancellation notice and do not begin work until the 3 days has passed.???Some states permit a waiver but there are very strict rules for that and most states do not have this waiver.??Better to wait the 3 days unless there is a true emergency.
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Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden City Plaza
Garden City, NY 11530
516 747 6700 x 301