Before giving a down payment, know what you are agreeing to. Always inquire about the merchant’s layaway policy. Layaway and cancellation policies vary from one merchant to the next.

Cancelling a layaway

Want to cancel a layaway? Know that merchants cannot set in advance the penalty they will charge if you cancel an agreement (for example, in a contract, in their layaway policy, in a statement, etc.) However, in certain circumstances, they could ask for a sum of money to redress damages actually incurred because of the cancellation.

Before giving a down payment

You should try to negotiate the lowest possible amount. A low down payment means a smaller loss if the store closes its doors or goes bankrupt before you take delivery of the item you purchased.

Are you doing business with an itinerant salesperson or a peddler? Usually, they are not entitled to ask you to give a down payment in the 10 days following the signature of the contract. Find more information about the rules that must be respected by itinerant merchants.


Last update : November 24, 2017

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The information contained on this page is presented in simple terms to make it easier to understand. It does not replace the texts of the laws and regulations.