How to Get Out of a Contract

Nowadays we sign so many different documents, it can be hard to keep track. While we should always know what we’re signing, some of us are drawn into deals and contracts we don’t really have much use for; other times, we have a contract that doesn’t quite offer you want you were expecting or should be receiving, such as a shoddy phone contract.

Overall, consumers should be careful when they sign the dotted line, however, sometimes what they’ve signed up for isn’t delivered properly,and many people want to cut ties with certain companies, especially if they’ve been given false promises. Other times, we’ve simply changed our minds. So what can you do about it? Here are several ways you could get out of a contract.

Review the Contact in Question

If you don’t know what you’re up against, you won’t be able to put in enough fight. Plus, the more you know, the less likely a company is going to try and pull the wool over your eyes. Many contracts have provisions in place, so find the section which lists the Termination Clauses. You may find out that your contract can be canceled with enough notice, saving you both time and money.

If You Don’t Ask, You Won’t Receive

Sometimes it can be as simple as requesting to leave. While many businessowners have the right to deny your request, asking never hurt anyone, and besides, there are some businesses out there that don’t act as massive corporations after just your money – but want a reputation for providing good custom.

When asking though, make sure to be kind and courteous in your letter or email (unless they warrant a firmer tone). However, even if the business hasn’t lived up to their end of the deal, being nice will usually pay off more than being rude, so keep this in mind when writing out your request. If the company deny, but you have good reason to ask for cancellation, then feel free to be more forceful. Usually, it’s cheaper and in the best interests of the company to let you leave if it can lead to legal action.

Check the “Cooling Off” Rule

The Federal Trade Commission (FTC)has implemented a rule in which consumers are allowed to “cool off” certain purchases that are $25 or more. Most of the time, consumers will have 72 hours to apply this rule, but you need to ask the company in question whether you can use this scapegoat. Before you sign a contract, the salesperson must tell you your cancellation rights and show you the relevant forms; if they don’t, ask.

Your Needs are Not Met (Breach of Contract)

If your needs are not being met, then you could have grounds for breaking your contract. While you need evidence to support your claim, if you do have the evidence, then this can be an easy means of cutting ties with the company in question. For instance, if you have a phone contract that offers 4G but your carrier hasn’t been able to provide you with any 4G for a couple of months due to a technical fault, then you can either ask for compensation or even negotiate yourself out of the contact altogether. If you’re paying for a service you are not receiving,and the company is worried of any negative backlash (e.g., a customer taking to Twitter), then they’d rather lose your custom than the custom of many.

Ask for Professional Help

Sometimes it’s easier to ask for the help of professionals than accidentally cause any trouble, especially when it comes to the legal ground and obligations of contracts. You can hire the services of a lawyer, or you find a person who specializes in a specific area of expertise. For example, if you’re looking to get out of a timeshare, then the Primo Management Group can look for ways to cancel your timeshare ownership in an ethical manner. There are many professionals out there who are able to help you in your dilemma. However, make sure to be open and honest about your case, show them any documents, files and contracts you have and have an open dialogue. By putting it into the hands of experts, you don’t have to worry about the legality of the situation yourself.

The Company is No Longer Willing to Perform (Repudiation)

Not to be confused with ‘breach of contract,’ repudiation is when the company is no longer willing to perform what was promised, as opposed to what they have been unable to promise. For example, if your broadband supplier is no longer promising to fulfil the needs you signed up for, whether that’s you are no longer getting the original bandwidth you signed up for or they’re hiking up the prices, you can ask to cancel your contract as they’re altering what you’ve agreed to and is, therefore, no longer valid.

The Contract was Fraud

If the contract you signed up for is fraudulent and dishonest, you can use this power to gain anadvantage. Compile the evidence proving that you were misrepresented, and your contract should be terminated quickly. If the company is refusing to cancel your contract, seek legal advice.

To many, a contract seems like a binding bit of paper, and while it is a legal document and very difficult to get out of, there are ways. While the road is not an easy one to take, there is no reason for you to settle in a contract that is either not performing what it is you’ve signed up for or is, in fact, fraudulent. There are legal routes you can take, such as hiring a lawyer, however, sometimes simply communicating with the providers can be enough, especially if there’s evidence that works in your favor. Do not settle, and instead review your contract. See if there are any loopholes available to you; ask for professional help and see if the contract is still intact and that the company itself is holding its side of the deal.

 

 

Posted in: Business