company can terminate a service agreement any time, but the client can not, is that legal in California?

UPDATED: Sep 30, 2022

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Sep 30, 2022Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

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


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 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.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption