Legal Question in Business Law in California

I’m based in the San Francisco Bay Area. My business signed a contract with this software company. My team paid the first 4 months of the invoice however my company is no longer using the software and we do not plan on using it any longer. I want to exit my terms with the company but I don’t want to pay the fee especially when I never got to use the service to its full capacity and some moments I paid for the service without having any usage. Here is the agreement (Apologies in advance for bad formatting):

Service Start & End Date

Auto Renews

Payment Terms

Invoice Period

2023-Jan-23 - 2024-Jan-31

Yes

Advance

Monthly

This Order is effective as of the date written above (the “Service Start Date” or “Effective Date”) and is a legal agreement between Nano Net Technologies Inc., (“Nanonets”) and the Company listed above (“Customer”). By signing below, Customer is placing an order for the service described in this Order (the “Service”), and Customer agrees to the terms and condition in this Order and Nanonets’ Terms of Service available at the following URL: http://www.nanonets.com/terms.html (“ToS”), which are hereby incorporated into this Order by reference. This Order and the ToS shall form the entire agreement between Customer and Nanonets with respect to the Service, and supersedes all prior agreements, proposals and other communications between Customer and Nanonets, whether oral or in writing, regarding the Service. Nanonets will use commercially reasonable efforts to provide the Customer the services described in this Order.

1. Services and Service Fees. The specific Services associated with this Order are described in the table below, and more specifically set forth in Exhibit A to this Order:

Item

Description

Price

OCR Pro Plan - 1 models

- Data Extraction from Forms - Wage reports

- Includes processing of upto 5,000 pages per month - API Integration

$500/Month

Classification Model

- Classification Model

$100/Month

Technical Support

Includes up to 10 hours of free technical support that can be used towards model retraining, integrations & set up

$0.00

Total

$600/Month

Overages Rates

per page

$0.1

per hour (technical support)

$200/hour

2. Overages. If Customer exceeds the limits as mentioned in description, the Customer will be charged an overage equal to the amount per page specified in Section 1 of this order form.

3. Discount. Customer shall be entitled to receive a discount of 16.66% on the final amount payable in case Customer pays the entire fees for a 12-month service period in advance, before the Service Start Date. In such case the entire 12-month period shall be considered to be the Term.

4. New Applications; Add-ons. The right to access the Service shall not include any new applications or product lines that are not specified in this Order, including but not limited to applications and product lines that are offered as optional add-ons unless Customer has paid for such add-ons and Nanonets has agreed to provide them under the applicable Order.

5. Term and Auto-Renew. This Order shall commence on the Service Start Date and terminate only on the End Date of the term specified in this Order. Early termination of the agreement will require the payment of the entire amount by the Customer until the End Date. Amounts paid in advance shall not be eligible for refund. Unless agreed otherwise and noted above, this Order will renew automatically for a term of 12 months at the end of the applicable term unless either party provides to the other advance written notice with respect to non-renewal at least ninety (90) days prior to the end of the then current term. Nanonets reserves the right to update its rates by giving a 45 days prior notice to the Customer. In the case of contracts with annual payment terms, Nanonets reserves the right to update its rates by giving a 45 days notice to the Customer prior to the auto-renewal of the contract. Nanonets will inform the customer about the price changes on the “Billing Email” as provided in the contract.

6. Case Study & Logo Permissions. Customer agrees to Nanonets' use of their logo for marketing purposes. Customer agrees to commit at least 1 hour of interview time with a Nanonets representative with the goal of producing a case study and testimonial that will appear on Nanonets website. Final content of the case study will be sent to Customers representatives for Customer approval (provided or withheld in its sole discretion) before publishing anything on the public nanonets website (nanonets.com) or elsewhere


Asked on 7/01/23, 5:55 am

1 Answer from Attorneys

What is your basis for cancelling without paying the agreed payments? If what they provided did not conform to the promised services, you may have an out. But just because you didn't use it doesn't allow you to breach the contract. If I lease a car and then find I never drive it, I don't get out of the lease. There has to be some serious defect in their side of performing the agreement for you to be entitled to walk away.

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Answered on 7/02/23, 11:56 am


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