Burbank, CA asked in Contracts for California

Q: Does a breach of contract void out the contract?

I signed a contract that stated I could cancel services anytime for any reason minus a $100 fee and be refunded. There is a privacy clause in it that states I cannot talk about the contract or post anywhere online (like yelp) about my experience or services. If the person has not refunded me the money and honored their part of the contract, am I still bound to the privacy part of the agreement?

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1 Lawyer Answer
Maurice Mandel II
Maurice Mandel II
Answered
  • Newport Beach, CA
  • Licensed in California

A: "The first rule of Fight Club is you don't talk about Fight Club." Under contract law, it depends whether this is a covenant or a condition. If the honoring of the terms of the cancellation is a condition to your being silent, then the failure of the condition relieves you of your obligation to be silent. If it is just an independent covenant in the contract, then the failure to refund the money does not erase your obligation to be silent. There is also the issue whether this "gag clause" (an unpleasant relative of Santa Clause) is void as against public policy, and/or whether there was actually consideration for that part of the contract- flowing from them to you for your silence. I would suggest a very strongly worded letter demanding your refund and stating you will take all "appropriate legal actions to vindicate my rights." Do not threaten to post or blab, such a threat could be seen as attempted extortion. You young folks get into the weirdest contracts and situations over your internet gaming and social media. Whatever happened to flowers and candy?

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