Did you enter into a contract you fully intended to keep – but now you’ve changed your mind? Sometimes, to protect your business, you need to get out of these contracts. But how can you do it legally?
According to our business attorneys, there are several ways to legally absolve a contract, that can allow you to avoid going to court and prevent you from spending too much money. Some of their recommendations are below.
Send a Written Request to Cancel the Contract
If you’ve decided you want to get out of a contract, one of the first things our business attorneys suggest you do is to send a written letter to the other party requesting to cancel the contract. Keeping lawyers out of it and simply making a written request can sometimes resolve the issue. To make it more appealing, your attorney might recommend offering a small sum of money for the inconvenience of canceling the contract.
However, simply letting you out of the contract can be the cheaper option. If the other party tries to sue you for breach of contract, it can result in hefty legal fees for them.
Cancel Within the Cooling Off Period
The Federal Trade Commission allows a “cool off” period of 72 hours for purchases of $25 or more. The Cooling-Off Rule gives you three days to cancel certain sales made at your home, workplace, or dormitory, or at a seller’s temporary location, like a hotel or motel room, convention center, fairground, or restaurant. The Rule also applies when you invite a salesperson to make a presentation in your home. But not all sales are covered. If this applies to your situation, your business attorney will help you use the law to get out of your contract.
Check Local Laws
There are local laws that can be longer – and more relaxed – than the FTC’s 72-hour cooling-off rule. Work with your business attorney to determine what laws you can use to legally get out of your contract.
Breach the Contract
While it might not be ideal, you always have the option to breach the contract. You can do this by not paying your bill, not providing full payment, or not carrying out what you agreed to in the contract. If you do this, you can be sued for breach of contract by the other party. However, it might still be more financially beneficial than paying out the entire contract. In court, you might be asked to provide a settlement to the other party. You will need a business attorney to represent you in court and during the arbitration meetings.
Hire a Business Attorney
If you are trying to get out of a contract, it’s essential to hire a business attorney. An experienced attorney knows what laws you can use to get out of the contract, and what implications you might face for breaking the contract. Hiring an attorney can help you save money, and protect your business from potential legal issues by getting out of the contract legally.
Why Hire Us
When you need a business attorney to absolve a contract, let the experts at Johnstone Adams LLC represent you. You don’t want to try to navigate this on your own – as it can result in a lawsuit, and cost you extra money.
Ranked in the 2022 U.S. News – Best Lawyers® “Best Law Firms” list regionally in 12 practice areas, we have experts in many areas of law to give our clients top-notch representation. In business for more than a century, our firm can mix its experience with the ability to evolve with the changing times.