company can terminate a service agreement any time, but the client can not, is that legal in California?
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company can terminate a service agreement any time, but the client can not, is that legal in California?
The IT Service providers states the following
4 Term Termination
The term of this Agreement shall be for three years 36 months from the date
first listed hereinabove the Initial Term. The Initial Term shall
automatically renew for additional one year 12 month periods each, a
Renewal Term unless either party gives the other party notice of its
intention not to renew this Agreement within thirty 30 days of the end of the
Initial Term or the then current Renewal Term. CLIENT may
terminate this Agreement for any reason, with or without cause, anytime during
the first ninety 90 days from the date first listed hereinabove
provided, that upon such termination CLIENT shall forfeit any monies paid to
COMPANY before the termination date and CLIENT shall owe
COMPANY for all work performed and services provided to CLIENT as of the
termination date. COMPANY may terminate this Agreement at any
time, with or without cause.’
doesn’t sound kosher to me…
Asked on August 10, 2017 under Business Law, California
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
It's legal if that's what the agreement the client signed says. People (and businesses; e.g. LLCS or corporations) may sign away rights, and may also enter into "one sided" agreements that favor the other party over them. So if this is what the agreement says and the client entered into it, they are held to what they agreed to.
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