What to do if I signed a 48 month contract to lease equipment but the very next business day I called to cancel since I realized that I didn’t need the equipment?

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What to do if I signed a 48 month contract to lease equipment but the very next business day I called to cancel since I realized that I didn’t need the equipment?

The company now wants me to pay for the balance of the contract even though I tried to cancel less than 24 hours later. Can I sue them or if they sue me for lack of payment do I have case?

Asked on April 29, 2013 under Business Law, New York

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

There is no "cooling off" or rescission period for contracts like you describe: you are bound to the contract from the moment you sign it forward. Therefore, they can sue you for the money due under the contract; most likely, since they are saving some money by not having to provide the actual equipment or services, they can only recover their lost profit--that is, say you ordered $20k of equipment, and the cost to them to provide it would have been $10k (inventory cost, delivery, etc.); they could likely then recover the $10k profit they would have made.


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