Legal Question in Credit and Debt Law in Maryland
Gym charging large fees for breaking contract
I signed a 1-year contract with a health club in Maryland. When I signed, I asked about early termination, and was told that there were no fees associated with it. The contract itself does not mention termination fees. 6 months into the contract, my wife and I have been transferred to New Jersey. Gym management says we have to honor the contract, or pay exorbitant fees. What are my rights, and what will not paying do to my credit? What actions should I take?
1 Answer from Attorneys
Re: Gym charging large fees for breaking contract
When you signed the contract, you agreed to pay for one year, and they agreed to provide service for one year. If there is nothing in the contract allowing early termination, then that's the deal: you owe them for a year, whether you use it or not. Any "termination fee" less than the balance remaining on the contract is a favor to you. Even if they told you something different before you signed, the contract almost certainly says that it is the complete agreement and precludes reference to oral promises, so that statement is meaningless unless there is an ambiguity in the contract.