If I signed a 6 month parking garage contract but got laid off so need to break it, do you think that the garage would bother to sue me for only $240?

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If I signed a 6 month parking garage contract but got laid off so need to break it, do you think that the garage would bother to sue me for only $240?

About 3 months in I was laid off from my employer who was giving me $40 towards my $80 per month parking spot. The parking garage doesn’t want to let me out of my contract for the remaining 3 months. Would they sue me to collect the remaining $240 or is it not worth their time? Would it be more beneficial to them to offer me a cheaper buyout since it will be an unoccupied spot? I have not entered the garage since my employment was terminated.

Asked on June 28, 2015 under Real Estate Law, New York

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

Legally, losing your job does NOT give you grounds to break the contract; you could be sued. A contract is binding on you even if your circumstances change.

Practically, it's not worthwhile suing for $240, and so, on an economic basis, they should either not sue or accept a lesser settlement. But people are not always rational: if the garage's decision maker decides to sue, he has that right.


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