Legal Question in Business Law in California

Can a company charge a contract customer an early termination fee if there is nothing in the contract about an ETF? Nothing in the contract says anything about a fee or penalty for early termination, only that 30-days advance notice is required. There is nothing in the contract that explains what that fees is based up or how it is calculated. Yet the company wants to charge the monthly service rate ($117) for the remaining months of the contract (11).


Asked on 4/19/16, 1:10 pm

1 Answer from Attorneys
Edward Hoffman Law Offices of Edward A. Hoffman

The monthly charge due under the contract is not an early termination fee. It's what you pay for the service you're getting under the contract. Since you would pay that amount monthly even if you didn't try to terminate the contract, it's not a fee for termination.

Without knowing what the contract says, I can't say if it allows early termination at all. The requirement for 30-day notice could be about something else instead, such as whether you will renew. You may want to review the contract with a lawyer to learn more about your rights.

Good luck.

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Answered on 4/19/16, 1:22 pm


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