Legal Question in Business Law in New Jersey
signed contract
I signed a contract with a dance studio and the contract is for 1 year. it states that if I break the contract before 1 year I have to pay them $2500. Can they hold me to this?
Asked on 4/27/09, 6:27 am
1 Answer from Attorneys
John Corbett
Corbett Law Firm LLC
Re: signed contract
It depends. If the $2500 bears a reasonable resemblance to the studio's damages, yes. If it is a penalty (disguised or otherwise), no. On the surface, a flat fee that gives no consideration to prior payments or time left looks more like a penalty.
See also: http://info.corbettlaw.net/lawguru.htm
Answered on 4/27/09, 2:48 pm
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