Legal Question in Business Law in California

The answer really depends on the terms of your contract. It could be that you waived your right to a court proceeding. Read your agreement carefully or contact an attorney to walk you through it.

Realistically speaking you should be able to negotiate with the company the terms. In these economic times I'm sure you're not the only one that is potentially breaching the contract.

It could make a big difference what the contract says......... for example, is the remaining unpaid rental $500 or $5,000? Is there an arbitration clause? An attorney-fee clause? A liquidated damages clause? Did your corporation or LLC sign the lease, and if so, did you sign a personal guarantee? Is the copier model in demand, or obsolete so that no one will want it? Was this a full-service lease? A financing arrangement only? Who owns the copier at the end of the lease, the lessor or you?

I have no way to guess whether you are at risk of being sued, and if you are, whether the damages awarded would be the sum of all unpaid rental payments, or a lesser amount -- or possibly more, if there is an attorney-fee clause.