47-25-1206 - Cancellation option.
47-25-1206. Cancellation option.
(a) (1) Notwithstanding any contractual provision to the contrary, the invention developer and the customer shall each have the right to cancel a contract for invention development services for any reason at any time within seven (7) days of the date the invention developer and the customer sign the contract.
(2) Cancellation shall be effected by written notice mailed or delivered to the invention developer or the customer. If the notice is mailed, it must be postmarked by twelve o'clock midnight (12:00) of the last day of the cancellation period. If the notice is delivered, it must be delivered by the end of the invention developer's normal business day. Within five (5) business days after receipt of such notice of cancellation by the customer, the invention developer shall return to the customer, by mail, all moneys paid and all materials provided by the customer.
(b) (1) The provisions of subsection (a) shall apply to every contract executed between an invention developer and a customer.
(2) Each such contract shall contain the following statement in ten (10) point boldface type immediately above the place at which the customer signs the contract:
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If you choose to mail your notice, it must be placed in the United States mail properly addressed first class postage prepaid and postmarked before twelve o'clock midnight (12:00) of this date. If you choose to deliver your notice to the invention developer directly, it must be delivered to that party by the end of that party's normal business day on this date. The invention developer also has the right to cancel this contract by notice similarly mailed or delivered.
[Acts 1977, ch. 436, § 4; T.C.A., § 47-20-106.]