It is important as a business to read your contracts when you are provided services from other businesses. It is also important that you understand the terms of those contracts, your obligations, and the service provider’s obligations under those contracts.
Why? You may decide to cancel a contract, and you fail to terminate a contract in accordance with its terms, you may end up getting billed for those services despite your request and you find yourself paying a lot more in the end.
Some service contracts such as telephone or internet services providers usually have a fixed term, and then automatically renews for an additional term, or proceeds on a month-to-month basis. These terms are important to know when and if you want to terminate those contracts.
Usually, there are terms in contracts that outline how to terminate those services. Usually, notice must be provided in writing and you must provide that notice within a specified amount of time. Reading your contracts and understanding those terms can save you a lot of hassle when you want to terminate that contract.
If you don’t comply with the terms of the contracts, you can end up paying a lot more than you want to, and there may not be much you can do about it, as you would be in breach of that contract.
It is always good to have your legal professionals review your service contracts as they know what to look for and can advise you what to expect should you wish to terminate those contracts and your exposure upon termination.
If you want to terminate within your initial term, most likely, you will be paying the balance of that contract term. If the contract is month-to-month, most likely you will have to pay for one month’s services, but you will not know until you read that contract.
All contracts are different, and its always a good idea to refamiliarize yourself with those contracts so you are reminded of the terms and obligations, as you never know when you are going to need to refer to them.
And remember, failing to read your contract is not a legal defence if you get sued, and it is also not an excuse for you to not pay the termination fees.
Murray Brown, Licensed Paralegal