California Codes, Civil Code - CIV, Division 3 — Obligations, Part 4 — Obligations Arising from Particular Transactions, Title 2 — Credit Sales, Chapter 1 — Retail Installment Sales, Article 3 — Provisions of Retail Installment Contracts, Section 1803.9
If it is explicitly understood between the seller and the buyer that all or any part of the cash price will be paid from the proceeds of a loan to be obtained by the buyer from a third party, the contract of sale or purchase order may be rescinded at the election of the buyer, and all considerations thereupon shall be returned by the respective parties without further demand, if the buyer is unable to obtain such third-party financing upon reasonable terms after having made a reasonable effort to obtain it, and buyer notifies the seller of the rescission within three business days.
Notes
Allows a buyer to rescind a sale contract or purchase order when the parties expressly contemplated third-party financing, the buyer makes a reasonable effort but cannot obtain it on reasonable terms, and the buyer notifies the seller of rescission within three business days. Requires both parties to return all consideration without further demand after a qualifying rescission.
Use as reference
Lexinter.net | California Code, Civil Code - CIV § 1803.9 | https://laws.lexinter.net/codes/california/civil-code/division-3/part-4/title-2/chapter-1/article-3/section-1803-9