Q. I have been offered a contract for my services with a very short acceptance period — only five business days. I will not have time to have my legal counsel review its terms. Does Texas law have a “cooling off” period for contracts that would allow me to cancel the contract even after I sign it?
A. No, unfortunately, absent some other legal defect in the contract, a professional contract, once executed, is binding. This applies to contracts for employment, to sell a practice, and so forth.
It is always prudent to make the time to have legal counsel review such agreements. Texas does not have a general cooling off period that would allow a physician to undo his or her agreement and “rescind” the contract for professional transactions. To rescind means to unilaterally unmake a contract so it is as if its terms never applied.
There are state and federal cooling off periods for certain consumer sales. Under both state and federal laws, for a transaction to be considered a consumer sale it must be to an individual who seeks or acquires real property, money or other personal property, services, or credit for personal, family, or household purposes. So, this means contracts for professional purposes do not enjoy the cooling off protection. Also, state and federal laws require the transaction to occur somewhere besides the seller’s place of business for the rescission rule to apply.
There are exceptions even to this consumer protection. More information on your rights as a consumer is available from the Texas Office of Attorney General and the Federal Trade Commission.
NOTICE: This information is provided as a commentary on legal issues and is not intended to provide advice on any specific legal matter. This information should NOT be considered legal advice and receipt of it does not create an attorney-client relationship. This is not a substitute for the advice of your own attorney. The Office of the General Counsel of the Texas Medical Association provides this information with the express understanding that (1) no attorney-client relationship exists, (2) neither TMA nor its attorneys are engaged in providing legal advice, and (3) the information is of a general character. Although TMA has attempted to present materials that are accurate and useful, some material may be outdated, and TMA shall not be liable to anyone for any inaccuracy, error, or omission, regardless of cause, or for any damages resulting therefrom. You should not rely on this information when dealing with personal legal matters; rather legal advice from retained legal counsel should be sought. Any legal forms are only provided for the use of physicians in consultation with their attorneys.
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Last Updated On
March 18, 2022
Originally Published On
March 28, 2012