Legal Question in Business Law in Florida

contract termination

How do I terminate a contract with a check authorization service without paying accelerated monthly minimum charges until the end of the contract if I am extremely unhappy with the way the company conducts its business and treats my employees? I signed the contract 3/14/1997 and tried to cancel the contract 4/17/2002. I was told that I had to cancel prior to 3/14/2002 or else I had to pay to get out. I signed the contract in California and the company is in Florida and the contract states that Florida law is binding. I have not signed and do not intend to replace their services with any other company in the future. Please inform me of my legal rights. thank you.


Asked on 5/10/02, 8:24 pm

1 Answer from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: contract termination

As the contract reads, Florida law is very likely to be applied; a lawsuit against you could be brought in Federal court or possibly in Florida state courtdepending upon various facts about where you operate, etc.

As a California lawyer, I can only give you general information about contract law. Florida law may differ in particulars.

Looking at contracts like this that are for on-going relationships, an early question is whether you can get out of it by terminating it according to its terms (or otherwise) without breaching, or whether you will have to breach and suffer the consequences, which often are rather mild, or nil.

Someone would need to read your contract in detail, including the termination, cancellation, breach, damages and attorney fee provisions. The promises regarding service levels should be examined to see if they are not performing properly.

A major question is how much financial damage, if any, will the service provider suffer if you terminate early, including lost profits. Is it enough for them to sue someone who is out of state? Can they get jurisdiction to sue you in Florida? Are they holding any of your money against which they can offset?

Ending a contractual business relationship where one side might think it justified and the other side might regard it as a breach worthy of suit is a strategic decision that calls for an opinion from a lawyer who can review the documents, and your complaint, and give you an informed opinion of your risk. The amount of money potentially at stake is important, too. Few companies will initiate suit against someone out of state unless they expect to recover something into five figures.

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Answered on 5/10/02, 10:17 pm


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