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Getting out of a contract as the customer

Whether you're a business dealing as the client with another business or you are a consumer, you do have some rights when it comes to contracts. Sometimes, you enter into a contract and then realize quickly it was a mistake. If you are the consumer or client -- whether you are a person or an entity contracting with another provider -- there are some things you can do to try to get out of the contract without breaching it.

First, make sure you read and understand the entire contract. It might include a clause for just such a situation. Some contracts include clauses that let either side cancel the contract in writing within a certain number of days of signing without any reason or questions asked. In such cases, you simply need to follow the provisions laid out for cancelling the contract.

Even when a contract cancellation clause is not present, you might be able to cancel the contract in writing. Send a written letter to all other parties to the contract stating your wish to cancel the contract. You might need to pay a small fee or buy out of the contract, but this can be less expensive in the long run than remaining in a contract you don't need or getting involved in litigation to get out of the contract.

If you don't see an obvious legal way out of a contract, consider speaking with a business law professional about your options. In some cases, breaching a contract might actually be the best way to move forward, particularly if breach penalties are laid out in the contract in lieu of potential lawsuits or litigation.

Source: FindLaw, "5 Tips to Get Out of a Contract," 5 Tips to Get Out of a Contract, accessed July 08, 2016

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