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  1. #1
    Join Date
    Jun 2003

    Would there still be a contract?

    OK Got the current situation with a customer for a smallish amount of money ($40) so something that I probably will write off however wondered what the legal point was. Our TOS says we require notification of 10 days before the renew date to cancel an account via email. Dates here are just to make explanation easy

    Customer gets an invoice issued on the 1st of the month
    On 3rd of the month they ask for their account to be cancelled.
    I say ok but the current invoice is due

    Now I'm expecting that invoice not to be paid however my question is that would the contract still be in effect so in theory could we bill that customer until that invoice is cleared or does one party saying they wish to cancel the account mean that any future charges would be null and void?

    Russ Foster - Industry Curmudgeon

  2. #2
    Join Date
    Mar 2002
    Legally yes they still have to pay the invoice.
    In reality it will never happen, both you and the customer know you are never going to take any legal action over $40.
    If you try and charge the customer you will get a chargeback.
    In this case its wise to just let it go, any option you take will likely cost you more then you will get.
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  3. #3
    I agree. Let it go. Your services are "pay in advance" so you're really not out anything anyways right? Scold them if you feel the need, but let them know that you'll simply delete the invoice and be the nice guy in the deal.

  4. #4
    Join Date
    Jul 2003
    Goleta, CA
    I would ignore most of the replies you get form this forum. The majority of us are not legal experts. Typically companies will have a premature cancellation fee but not bill the full amount. Granted this is usually for longer term contracts as can be seen with the cell phone company I see no reason why you couldn't apply it to a shorter term contract.

    At the end of the day if they successfully get a chargeback there's nothing you can do about it. From a practical standpoint 40 bucks isn't worth the dent to your merchant reputation and the chargeback fee + time spent fighting the chargeback. I would just let it go.
    Patron: I'd like my free lunch please.
    Cafe Manager: Free lunch? Did you read the fine print stating it was an April Fool's joke.
    Patron: I read the same way I listen, I ignore the parts I don't agree with. I'm suing you for false advertising.
    Cafe Owner: Is our lawyer still working pro bono?

  5. #5
    From a client side, when looking for servers I always look for companies who are willing to let me cancel with little notice... i.e. 3-5 days notice maybe you should cut your policy a little shorter like some other companies are... this may even get you more clients who are currently put off with your 10 day policy.

    I know one of your previous clients who you had trouble with over payment, so you must have some issues?

    Goodluck anyway,

  6. #6
    Join Date
    Aug 2005
    Seattle, WA
    If you were selling servers, this would be a different conversation. However, since shared hosting really doesn't cost YOU anything if they're not using their account or they've only used it for 3 days, let it go. A reputation as an understanding company is worth more then $40, don't nit-pick when it doesn't hurt you either way.

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