Nevada Timeshare License Practice Exam

What is the status of a contract if a developer attempts to obtain a waiver of the right of cancellation?

1. Enforceable by purchasing

2. Voidable by the purchaser

3. Valid until challenged

4. Legally binding

The correct answer is: Voidable by the purchaser

A contract is considered voidable by the purchaser when a developer seeks a waiver of the right of cancellation. In the context of timeshare agreements, the right of cancellation is a critical consumer protection that allows buyers to reconsider their purchase within a specified period after entering the contract. When a developer attempts to obtain a waiver from this right, it indicates an infringement on the buyer's legal protections. The law safeguards consumers by allowing them to cancel the contract, especially in the case of timeshares, which can be significant financial commitments. Therefore, the correct answer reflects that while the contract is formed, the purchaser retains the option to cancel it, making the contract voidable should the buyer choose to exercise this right. This understanding reinforces the importance of consumer rights in real estate transactions, particularly in the realm of timeshares.