Is it legal for a client of mine to cancel a contract because of a theft if they have no proof that I stole anything?

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Is it legal for a client of mine to cancel a contract because of a theft if they have no proof that I stole anything?

I have a commercial cleaning franchise and one of my clients cancelled the account because there was a laptop missing. They have no proof on who took it and my contract states that unless for reasons being non-satisfactory of services or anything they can prove they would have to pay the remainder of the contract in a settlement. That has not happened and my franchise wound up keeping the client as a customer. Is this legal?

Asked on November 30, 2011 under Business Law, Ohio

Answers:

Jonathan Baner / Baner and Baner Law Firm

Answered 9 years ago | Contributor

The question is really whetehr or not you can bring a lawsuit against them for breach of contract (or similar cause of action).  Then the question becomes: 1. is it worth the time, costs, and aggravation as well as the potential commercial costs (business owners talk to each other).  If it is a good amount of money, and it can be readily established that they are in breach for no good cause, then fine. 

However, they are not the police.  They do not have to prove anything to you to cancel the contract as you can see - they did so quite easily.  Remedies must be obtained by the parties, or if they cannot agree, imposed by the courts.


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