Termination Clause on 12 month contract

Discussion in 'Lawn Mowing' started by Perfect touch landscapes, Jan 11, 2010.

  1. Perfect touch landscapes

    Perfect touch landscapes LawnSite Senior Member
    Posts: 254

    Need help with Termination clause, mine is allright ,but it is not perfect in my opinion , i need better verbage, to protect my self better. I must of looked at 30-40 different termination claused for different lcos contracts and they are all about the same. I need to explain really good prorated services. Why i have to charge for cancelation of contract.
    Here is all i have on my termination. Please add and help me modify. Thank you.



    21. Termination - It is agreed that either party may terminate this agreement by giving written notice 30 days in advance. It is further agreed that if the client fails to pay PTL according this agreement, all services will immediately cease until account is brought current, or terminated without further notice. Cancelation or termination on prorated services will be billed accordingly.
     
  2. Perfect touch landscapes

    Perfect touch landscapes LawnSite Senior Member
    Posts: 254

    Anyone?
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  3. billslawn89

    billslawn89 LawnSite Bronze Member
    Posts: 1,364

    i write in my service agreements, that if they cancel for any reason before the 12 month period is up, then the price is defaulted to a per cut basis, which is figured out to be more then the monthly pricing would have been, then the client owes the balance at end of service.
     
  4. ed2hess

    ed2hess LawnSite Fanatic
    Posts: 13,140

    I don't know what PTL is but I don't like the tone of that sentence. And Bills got the answer that you really need to put in commerical accounts.
     
  5. nlminc

    nlminc LawnSite Bronze Member
    from GA
    Posts: 1,671

    Here's what I have.


    The monthly cost of maintenance will be $XXXXX, the amount will be billed monthly, in advance, and is due by the 10th of the month. This agreement will automatically renew each year. Either party may cancel with a thirty-day (30) written notice and payment of the pro-rated annual cost of this agreement as referenced on Attachment “A”.

    It is understood by both parties that the estimated value of this annual contract is $XXXXXX. As a convenience to the property owner, XXXXX has agreed to accept this annual amount over a period of 12 equal payments. It is understood by Customer that any early cancellation of this agreement will result in a termination fee depending on the services provided and fees paid through the date of cancellation.
     
  6. Perfect touch landscapes

    Perfect touch landscapes LawnSite Senior Member
    Posts: 254

    Best response I ve gotten yet, do you have anything else on fees, I want to prorate fees what's left, but do not want to charge termination fees, by law I think you can't charge any penaltys.
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  7. nlminc

    nlminc LawnSite Bronze Member
    from GA
    Posts: 1,671

    Thanks, I was dating a paralegal manager for a large law firm in Atlanta at the time and she had this worded. It pays to date lawyers and paralegals sometimes!

    To get your balance back that is owed when someone cancels you have to have a break down of what they've paid so far for the year and what services you've provided. I have an excel spread sheet that shows how many services visits/year/cost/service and it breaks down over 12 months to a monthly fee for example of 200.00/month. If the customer cancels, this excel sheet will then show at the time of cancellation the number of services that have been performed and what the customer has paid to date. The excel sheet is what is noted as the sched/Attachment A on my contract.
     
  8. Perfect touch landscapes

    Perfect touch landscapes LawnSite Senior Member
    Posts: 254

    Anyone else
    Posted via Mobile Device
     

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