Non-Cancelable Equipment Leases

[kiwicarlos741]

My question involves business law in the state of: california

basically long story short, my dad signed a non cancellable lease for a credit card terminal processing company and when we did some research the same night we had seen all the reports of people complaining about fraudualnt, lying practices. we then within 24 hours sent a notarized letter thru certified usps mail stating that we were cancelling the contract and were excersising option 22 in the contract which states " ABILITY TO OPT OUT. you have the opportunity to negotiate the terms and conditions of this lease and you are not required to accept the terms and conditions as they currently appear in this lease. however if you wish to exercise this option you must notify us in writing via certified mail winithin seven days of the date you sign this lease that you wish to exercise this option, whereupon you and we shall endeavor to negotiate in good faith alternative terms and conditions as may be mutually agreeable, and should we be unable to reach an agreement within ten days of our receipt of your noticeeither party shall have the right to RESCIND this lease.


so my question is considering that we sent a letter of cancellation within 24 hours of signing the contract, and what is stated in option 22 of the contract, do we have anything to work with. any help to get these crooks away is appreciated thanks, also if anyone thinks that they can help and needs more info please let me know and i will do my best to give it too you

[jk]

Option 22 makes absolutely no sense as it makes the lease non-binding for the period of time mentioned. The time to negotiate a lease is prior to signing it..

but, if that is what it says, negotiate away. Realize it states it must be in good faith which means you cannot simply tell them you want everything for free and if they can't meet that you want to rescind the contract.

[kiwicarlos741]

Yeah I myself didn't quite understand if it says non cancelable why they would even put the option 22 in the contract. I know in the state of California for consumers, there is a 3day grace period to get out of any kind of contract agreement when I was looking through some stuff but I couldn't find what the deal is when its for businesses which is entirely different. Is there absolutely no way of getting out ofthe contract then, no loopholes of any kind? My dad sent the letter in less than a days time about cancelling everything and when ups had sent the leased equipment we refused and had it sent back. We didn't get any of there services set up or any of that.

[Mr. Knowitall]

Option 22 makes absolutely no sense as it makes the lease non-binding for the period of time mentioned. The time to negotiate a lease is prior to signing it.

I expect that this is the contract (or another version of the contract), albeit not necessarily the same entity.

The language does not say "You can cancel within 7 days" and "I want to cancel" is not the same thing as the exercise of an option to negotiate - so if the seven days aren't up you had best contact them as described in the contract to attempt to renegotiate the terms.

My dad sent the letter in less than a days time about cancelling everything and when ups had sent the leased equipment we refused and had it sent back. We didn't get any of there services set up or any of that.

If you sign a lease but don't take advantage of the equipment you're leasing or the services you've contracted to receive in association with the lease, then you're basically choosing to take a loss. If you are now bound to the lease and have need of the services, your concerns about what you've read online being duly considered, it seems worth trying to take advantage of the equipment and services you're paying for.

[jk]

I know in the state of California for consumers, there is a 3day grace period to get out of any kind of contract agreement

actually, it is quite confusing as to what rights there are. Here is a list of the areas that have cancellation periods:

http://www.dca.ca.gov/publications/l...ides/k-6.shtml

I presume your situation is a commercial contract though which is not covered under such consumer protection laws.

option 22 doesn't actually allow you to rescind the contract, at least without first going through the negotiation process. I suspect they know how to play their game very well.

[kiwicarlos741]

I see, I see, I appreciate all the replies and help you guys. I guess he's just going to have to see how they want to play this out. And yeah, these guys definately do know how to play there game. Therws hundreds of complaints on payment systems corp online with the same exact scernarios that has happened to us. Over 200 bbb complaints alone. Thanks again everyone

[jk]

lesson from this:

investigate before signing a contract, not after.