I see a lot of clients who have entered into a contract for all manner of goods and services such as their lease of business premises, IT contracts, utilities, even their photocopier is on a long hire term. I advise both those buying the goods or services as well as those clients selling the goods and services.
Often, these contracts can be for a number of years and during this period, things can change. Perhaps the service isn’t enough to meet your growing business or maybe you could now secure better terms as the market has since changed. If you are suppling the goods or services, you might want to stop supplying a customer if you are no longer making a profit from it, or maybe the customer isn’t a very good payer.
Either way, before jumping in to cancel a contract you should take legal advice about whether you can do this and if so, whether there are any penalties to be paid as a result. It might be that you can re-negotiate the terms of your contract with your supplier to avoid any nasty or onerous penalties or you might simply decide it is better to continue with your contract until the end of the term. By taking legal advice, you are best managing the contract as being hasty can end up costing your business a lot of money especially if you do not understand all of the legal implications of cancelling your contract before you take the plunge.