Early Termination Damages?

Get Legal Help Today

 Secured with SHA-256 Encryption

Early Termination Damages?

I switched providers for my gas service as a small business. We decided to rescind and it was within the 10 business days they allowed us. Under the rescission clause, it was stated there would be no penalty. But they just sent us a bill stating we owe thousands in early termination damages. Under the termination clause, it was stated that they called that termination damage a recovery cost that is not a penalty. Would I still owe the money if that cost was not made clear under the rescission clause?

Asked on July 1, 2019 under Business Law, Illinois

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 2 years ago | Contributor

If they are charging you what was in the contract as an amount--regardless of what it was called--they could get for early termination, then they can get this. The issue is not whether you personally understood it--i.e. whether it was clear to you--but rather whether the information was in the contract. If it was in the contract, you could be held to it, since the law presumes you read, understood, and agreed to what you sign. If it was not in the contract, however, they could not charge you.


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.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption