“Buyer’s remorse” is not something you want to feel after entering into a binding contract. Unfortunately, people occasionally execute contracts without carefully reading the terms or completely understanding their rights and responsibilities. Whether you have entered into a purchase agreement, health club membership, or commercial lease, a contract can be tough to break.
Nevertheless, you may need to terminate a contract at some point. Fortunately, you may have options for breaking the agreement.
Does the Contract Have a Termination Clause?
If you want to end an agreement before its expiration, you should first search the agreement for a termination clause. Some contracts include terms that dictate what happens when one party wants or needs to terminate the contract. In most situations, a termination clause requires the party who wishes to end the agreement to notify all parties of his or her intent to terminate the contract. Furthermore, termination provisions generally include a preapproved list of reasons for ending the agreement. Per the terms of the agreement, you may also have to pay a penalty for ending the agreement.
What If the Contract Does Not Have a Termination Clause?
On the other hand, it is just as likely the contract you want to break does not have a termination clause. In this case, you may still have options. Generally, we start by contacting the other party or parties. In some cases, the other parties are amenable to reaching a solution that permits one party to terminate the contract without resorting to litigation.
Failing this solution, a party who wishes to terminate can simply stop performing, however, this puts the party in breach of the agreement, which can open him or her up to costly and time-consuming litigation.
Many clients are shocked to learn the consequences of breaching even comparatively simple contracts, such as health club membership contracts. If the agreement requires you to pay a substantial amount of money, the other party may deem your breach worthy of filing a lawsuit.
Ask an Attorney Before You Sign
Before you sign any kind of contract, ask the Roseville, California business lawyers at Yee Law Group Inc., PC whether it is in your best interest to enter into the agreement. Whether you are ready to sign an apartment lease, sign up with a gym, or buy a new home, you will save yourself a lot of money and frustration in the long run by making sure your interests are protected from the start. Our attorneys will review your contract thoroughly and identify any terms that require a closer look or revision. Money spent on a basic contract review can possibly save you thousands down the road.
Call today at (916) 599-7297 to speak to an experienced business lawyer about your needs and goals.
This website has been prepared by Yee Law Group Inc., PC for informational purposes only and does not, and is not intended to, constitute legal advice. The information is not provided in the course of an attorney-client relationship and is not intended to substitute for legal advice from an attorney licensed in your jurisdiction.