Legal Question in Business Law in California

Well, yes and no and maybe. First the "maybe." If a commercial equipment lease agreement requires 90-days notice, then it is enforceable. They can't just "tell" you that when you go to end the lease, but if the agreement was 90 days and you only gave 30, they can enforce that. If there is a 90-day requirement then we get to the yes and no. Technically you are legally entitled to breach the lease agreement by terminating it early. So can they force you to keep the equipment and pay for another 90 days? No, not really. BUT, you are liable for breach of the contract if you cancel without the required notice. So then the question becomes what are their breach of contract damages. Their damages are the difference between what you would owe for the full 90 days, less any costs and expenses they would have incurred by you keeping the equipment for those 90 days. With most equipment leases the costs are front loaded, plus depreciation. By the end of a lease, the payments are almost pure gravy for the leasing company. So their breach of contract damages may essentially be identical to the payments owed. Best you can do is either tell them you are terminating and that you are willing to negotiate an appropriate payment for any actual losses that will cause them, but not the full payments, or keep the equipment and use it for the additional 90 days while the proper notice period runs out.