Asked in Business Law and Contracts for California

Q: Can I terminate service contract (CA law) for convenience (no breach), if it doesn't provide me with such a right?

I would like to change service provider prior the expiration of the contract term. The contract doesn't have termination for convenience clause for me. And there is no breach from the other side. I just found better price for the same services. The contract is governed by the laws of California. Maybe I can terminate the contract with the reference to law (some legal provisions)?

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2 Lawyer Answers
Julie King
Julie King
Answered
  • Monterey, CA
  • Licensed in California

A: It’s hard for a lawyer to advise on a contract without reading it. Unfortunately, it’s a bit like saying, “I’m reading a nonfiction book about X, how will it end?” There might be ways to get out of the contract early, such as if the vendor breached the contract but, without reading your specific contract, no one could say. But, if we assume there’s no way out of the contract for convenience (which means you can get out for no reason other than you want to end it), then there are two choices: (1) end it upon the conclusion of the term; or (2) end it early, which is a breach of the contract, and pay damages to the vendor. I hope that helps!

James L. Arrasmith
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Answered
  • Sacramento, CA
  • Licensed in California

A: In California, if a service contract does not contain a termination for convenience clause, it may be difficult to terminate the contract without incurring legal consequences. However, there are some legal provisions that may allow you to terminate the contract.

One possible option is to argue that the contract is unconscionable, meaning that it is so one-sided and unfair that it should not be enforced. Another option is to argue that there has been a material change in circumstances that makes it impossible or impracticable for you to continue with the contract. However, it may be difficult to make such arguments without the help of a legal professional.

In any case, it is important to carefully review the terms of the contract and consider the potential legal consequences of terminating it early. You may also want to speak with a legal professional to discuss your options and ensure that any actions you take are legally sound.

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