New customer cancels 12-month contract after one month?

Discussion in 'Business Operations' started by shop's lawn, May 3, 2012.

  1. shop's lawn

    shop's lawn LawnSite Member
    Posts: 72

    UPDATE- I have been talking with my attorney that I use for the business, He advised me since there was never any compalints or issues brought until the day they cancelled the contract, with never any warning or cause to cancel- I guess saying they are not happy is not valid cause to cancel contract without warning,chance or sit down to talk about issues is breach of contract. I took photos of each property the day after they cancelled the contract to show it was in good looking order besides it was our cutting day for them that week. I didnt take any before photos but my attorney went online and contacted the listing agent that the contract holders just purchased and got copy's of the pics they took when listed. I now take before pics of any new jobsite before we do one min. of work on site and put in there file. In my commerical contracts we have in there if you cancel during length of contract 50% of remaining balance is due within 30 days of date of cancel.
    My attorney sent them a letter saying they owe for apirl then the 50% left of contract with payment due in 10 days is demanded.

    We will see what they say this week.
     
  2. dKoester

    dKoester LawnSite Gold Member
    Posts: 3,242

    It doesn't matter if the leaves were wet. First impressions are everything. You need the WOW factor. Learn and move on. Better things are ahead of you.
     
  3. Kelly's Landscaping

    Kelly's Landscaping LawnSite Platinum Member
    Posts: 4,278

    So you told them instead of $1300 its now $7500. I fear that may actually hurt your case if it goes to court as it doesn't sound good. What I don't like about that year contract is you get the same amount each month all year but when you do the spring clean ups the amount of work you do is actually more then that months bill. So if they decide to pull this you get stuck with one months billing instead of the price of the clean ups which would likely be double the lawn cuts.
     
  4. Oxmow

    Oxmow LawnSite Senior Member
    Posts: 382

    I put a non cancel clause into all my contracts that states 30 day cancellation with payment of actual cost of any services rendered up to the point of cancellation. This way all work done gets payed for regardless of when its cancelled. Most of the time this happens in the winter when we arent on a property for the "normal" summer time frame. After presenting them with a bill for what is owed, they usually decide to finish out the "payments" for the year instead of one lump sum.
     
    Last edited: Jun 23, 2012
  5. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Posts: 7,961



    Pretty much the same here. Basic statement that equal payments does not mean equal work. Work is based on the season and weather. Early termination is available provided they pay for actual work performed.

    They can get out of the actual work billing provided they cancel for non-performance via written notice and we are given 30 days to make corrective action. ever had anyone use it or even try.

    I did fire an account for non-payment but it was also my land lord. I just took it off the rent. Later the roof started leaking. The poor idiot fool could not fix it, too broke. I moved out and he let me out of the lease.
     

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