• Cancellation of 2 year subscription agreement

Our company had signed a 2-year non-cancelable subscription agreement in Oct 2016 with "Reseach & Advisory Company" for availing research and advisory services. 

However, after the 1st quarter of availing the services, in the 2nd quarter, the quality and response of the service were extremely deteriorated and we were making all attempts to communicate and get the desired services as per the expectations, however, all efforts were in vain.

Thus, we didn't pay for the 2nd quarter invoices raised by "Service Provider" and sent them the written notice to cancel our subscription to the services in May 2017 expressing our dissatisfaction of our services. 

After our cancellation notice, they continued to chase us and expected us to resume the services on the promise, that they will improve their services for better. 

We continued to insist them that we don't want to engage further at which point, they have sent us the legal notice through their lawyers, based on our 2-years non-cancelable Agreement we have signed with them. 

What are the options we have for responding to this Legal Notice and how we should protect the rights of our company to disengage with service providers, who don't meet our satisfaction? 

We don't want to pay for services, which we have not consumed, as well as don't intend to avail in the future. What are our options..?

Thanks
Director
Asked 5 years ago in Business Law

7 answers received in 1 day.

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8 Answers

First please tell me is there any termination of contract clause in the agreement or not?

And if there is one then there is no need to worry, you need to reply to the company behemently and saying that "it is you who violated the terms of the contract and hence we can not help liable for violation of contract", and also they can not come to court with dirty hands.

Also tell me if there is an arbitration clause or not??

Regarfs

Anilesh Tewari
Advocate, New Delhi
17943 Answers
377 Consultations

5.0 on 5.0

1.Even in the non revocable agreement there must a escape clause.

2.So the agreement will have to be seen.

3.If such clause is not there then also on the ground of poor service you can come out of the agreement.

4.However in doing so you will have to make payment for the services already received by you.

4. So if no arrears payments are due you can cancel the agreement and proceed with someone else.

Devajyoti Barman
Advocate, Kolkata
22515 Answers
409 Consultations

5.0 on 5.0

it is necessary to peruse contract signed by you with company to advice

2) if services provided were not up to the mark you can terminate the contract

3) however if contract mentions that services are non cancellable you would be bound to pay the subscription fees

4) contact a local lawyer and reply to legal notice

Ajay Sethi
Advocate, Mumbai
89092 Answers
6362 Consultations

5.0 on 5.0

Q. they have sent us the legal notice through their lawyers, based on our 2-years non-cancelable Agreement we have signed with them.

A. a contract cannot be con-cancellable. if this clause is inserted in the terms of agreement then it is void under section 15 & 23 of the contract act. it is undue influence and against the law. you are not abide by this clause of agreement.

Shivendra Pratap Singh
Advocate, Lucknow
5127 Answers
78 Consultations

4.9 on 5.0

on deterioration of service company cannot enforce this agreement and also cannot claim compensation. a guilty party to the agreement cannot claim compensation for breach of agreement under section 73 of the indian contract act.

Shivendra Pratap Singh
Advocate, Lucknow
5127 Answers
78 Consultations

4.9 on 5.0

Hi,

Usually there is a clause in every agreement to include situations of breach of services by the either parties. Did your agreement include one? If it did, you can take recourse to it and state that since the services were not as per your expectations, the service provider had breached the contract.

If you do desire any other option, we will have to peruse your agreement in detail.

Regards,

Keerthiga Sharma

M.Com., CA, LL.B

Keerthiga Sharma
Advocate, Greater Mumbai
44 Answers
2 Consultations

5.0 on 5.0

1. The matter looks dicey for you.

2. Was there any clause specifying the quality of service to be provided by them? Was there any minimum standard clause in the said subscription agreement entered in to by and between you and the said party? In short is there any escape route left in the said subscription agreement allowing you some chance to disengage you from the said agreement?

3. If not, then it will not be prudent on your part to allow the dispute of your trying to terminate the contract to reach the Court if you have closed all your options to legally terminate the agreement.

Krishna Kishore Ganguly
Advocate, Kolkata
26800 Answers
726 Consultations

5.0 on 5.0

You should respond to the legal notice by giving reply notice.

In reply, you should deny all the allegations made against you therein.

You must mention the clause for breach of trust and estate that their service was far from satisfactory and in contravention to the agreement hence the agreement stands cancelled

Take the assistance of a local lawyer.

T Kalaiselvan
Advocate, Vellore
79250 Answers
1618 Consultations

5.0 on 5.0

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