When is a contract cancelled?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
When is a contract cancelled?
I’m currently in a contract with alarm company A that ends in roughly 7 months. I go into a contract with alarm company B and inquire with company A to cancel contract. Company A says I’ll have to submit a cancellation letter and pay the remainding balance of the contract. I decide not to send the letter to cancel company A contract. I make payments to both company A and B. My inquery about cancellation happened about 5 months ago. I recently received a letter from company A saying they cancelled my contract and that I need to pay the balance by the end of the month. Am I obligated to pay?
Asked on November 9, 2011 under Business Law, Hawaii
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
If you have a contract for services that has a few months left to run on it, that contract would ordinarily not be cancellable early unless 1) there was some term or condition in it allowing early cancellation; 2) the company violated the contract in some material (important) way; or 3) you asked to cancel and the company agreed to let you cancel--but since that agreement is voluntary, they could impose conditions on it, and if you accept those conditions, you'd have to abide by it.
Under the situation you describe, you did not accept their early cancellation conditions, since you did not provide an early cancellation letter or pay the outstanding balance at the time. Therefore, it would seem that your contract was not cancelled. You would be obligated for the remaining term of the contract--including paying for any remaining months--but would not have to make a lump sum payment of the balance; they will also have to continue providing the service while you are paying, for the remainder of the term.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.