A homeowner signs a home improvement contract for a $30,000 kitchen remodel on March 1. On March 15, after work has begun, the contractor and homeowner sign a written change order adding $4,000 of additional cabinetry work due to a design change requested by the homeowner. Does the homeowner have a new three-day right to cancel triggered by signing the change order?
- ANo, a properly executed change order to an existing contract does not create a new statutory right to cancel
- BNo, but only because the change order was requested by the homeowner rather than the contractor
- CYes, every change order automatically restarts a new three-day cancellation period for the entire contract
- DYes, but only if the change order increases the total contract price by more than 10 percent
Show answer & explanationAnswer & explanation
Correct answer: A. No, a properly executed change order to an existing contract does not create a new statutory right to cancel
The three-day right to cancel under California's Home Improvement Contract law applies to the original execution of the home improvement contract, not to subsequent written change orders that modify the scope of an existing agreement. A properly documented change order becomes part of the original contract and does not trigger a new cancellation period, regardless of price increase or who requested the change.
Why the other options are wrong
- B. Incorrect — the reasoning about who requested the change is irrelevant to whether a new right to cancel arises.
- C. Incorrect — change orders do not automatically restart the cancellation period for the whole contract.
- D. Incorrect — there is no percentage threshold that triggers a new right to cancel for change orders.
Change Orders and Right to Cancel
A written change order that modifies an existing home improvement contract does not create a new three-day right to cancel; the cancellation right applies only to the original contract execution.
- Change orders become part of the original contract once signed
- No new Notice of Cancellation is required for standard change orders
- The original 3-day cancellation period is tied to the initial contract signing date
Memory trick: One contract, one clock — change orders don't reset the ticking three days.