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  1. #1

    Default Can You Cancel a Contract After It Auto-Renews

    My question involves a consumer law issue in the State of: Massachusetts

    I signed a one year contract with Regus for a virtual office which expired on March 31st, 2015. I no longer am in need of their services so I sent the general manager an email on May 13th 2015 stating that I wanted to cancel the service since the contract expired. He informed me that all Regus agreements are auto-renewing as stated in the Terms and Conditions, Section 2.2 and 2.3, unless the proper notice to not renewed is received and At this time, I am unable to cancel the agreement. The exact words from the contract are below:

    2.2 Duration: This Agreement lasts for the period stated in it and then will be extended automatically for successive periods equal to the current term but no less than 3 months (unless legal renewal term limits apply) until brought to an end by the Client or by Regus. All periods shall run to the last day of the month in which they would otherwise expire. The fees on any renewal will be at the then prevailing market rate.
    2.3 Bringing this Agreement to an end: Either Regus or the Client can terminate this Agreement at the end date stated in it, or at the end of any extension or renewal period, by giving at least three months written notice to the other. However, if this Agreement, extension or renewal is for three months or less and either Regus or the Client wishes to terminate it, the notice period is two months or (if two months or shorter) one week less than the period stated in this Agreement.

    From what I understand in the terms and agreement, I can cancel if I give 3 months of written notice. PLease HELP me. The general manager does not want to let me cancel and says that the only thing that he could do for me is "offer me some sort of buyout".

    I have a family of three kids under the age of 3 and our business is not doing well. Having an extra $89 a month could help out with all the diapers that we need to buy.

    Thank you very much for the time anyone takes to helping my family and I.

    Best,
    Laryssa

  2. #2
    Join Date
    Apr 2009
    Location
    Somewhere near Canada
    Posts
    35,894

    Default Re: Can I Cancel a Contract if It Auto Renews

    You can actually cancel at any time. The question is actually whether or not you'll walk away unscathed financially.

    So what does it say about early cancellation penalties?

  3. #3
    Join Date
    Mar 2013
    Posts
    18,017

    Default Re: Can I Cancel a Contract if It Auto Renews

    Quote Quoting laryssalacerda
    View Post

    From what I understand in the terms and agreement, I can cancel if I give 3 months of written notice.
    That's not correct.

    The cancellation provision says 3 months notice to the end of the contract period. So if it auto-renewed for another year you would have to give 3 months notice prior to 1/1/16 that you don't want to renew on 3/31/16.

    It appears that you are stuck with the contract until 3/31/16.

    Presuming that you have paid for August you have 7 months to go for a total of $623.

    If you buy your way out of the contract you'll be expected to pay some factor of the $623, maybe half. I'm just guessing, but that's what I'd want if I was on the other side.

    You don't have any leverage here. If you simply stop paying you can be sued and lose (and add the other sides attorney fees to the debt) or just be sent to collections (which would add interest, fees, and costs to the debt), neither of which is anything you want to experience.

    If you reach a buyout agreement, make sure you get it in writing.

  4. #4
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: Can I Cancel a Contract if It Auto Renews

    It states you must give 3 months notice prior to the date of the expiration of the lease period. That means you must give notice by December 31 of this year for it to terminate March 31 2016.


    Unless there are any any early termination clauses you liable for the lease until March 31 (providing you do provide proper notice before the end of this calender year).

    Regus has offered to negotiate an early buyout. You may want listen to their offer. Unless there is something in the contract requiring them to provide such an offer, they can rescind it and refuse to offer it again in the future. So, you either accept their buyout offer or you pay until the end of March. Your choice.

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