Dave's ESL Cafe's Student Discussion Forums

[hanygeorge38]

Dear Bud,

In the following business letter i wonder what is meant here by
(transaction, rescission, provided for under federal law, and down
payment)



NOTICE OF RESCISSION

To: __________________________________

This is to notify you that I hereby cancel the Transaction
entered into on ___________________ between_______________
and myself.

This notice is being mailed to you on __________________,
which falls within the three day right of rescission period
provided for under Federal Law.

I am requesting that you return my down payment immediately.

________________________________
(Signature)
_________________
hany

[bud]

Hi Hany,

transaction = business transaction - it is business activity between two or more parties, usually a sale/purchase. In this case, it is probably a purchase. Opening a bank account is another type of transaction.

rescission - I am not aware of this word and could not find it in a dictionary. It is probably a word used only in business and law, and apparently means the cancellation of a transaction.

provided for under federal law - it means that there is a federal law which deals with this particular issue. In this case, federal law states that a party has 3 days to cancel a transaction without liability for damages.

down payment - it is a part of the purchase price that is paid when the buyer takes possession of a purchase. Sometimes the down payment is paid before possession is transferred, such as at the signing of a contract. Usually the down payment is significant, such as 10% or 20%. The balance is then paid in monthly installments to the seller, or with a bank loan or some other means.

Hope that helps.

[hanygeorge38]

Dear Bud,

Many thanks for your helpe and assestance


Hany
_________________
hany

[bud]

My pleasure, Hany.