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Company says I cannot cancel the hosting/licensing and they will sue me for the term?

I had a program designed by a company. we have decided to not use the application they built at all as we felt they were not competent and it is not suited to our specifications and we just do not want to use them anymore.


They believe they have fulfilled all their obligations and I signed their document stating it was fulfilled but thats because I wanted another developer to start working on it. I even told them this that i was wanting to cut ties from them altogether. Well, they were hosting it and licnsing it on their server. They were charging a monthly fee for this. I now have told them I do not want to use the app at all, and want to cancel. They said I cannot cancel because I did not have a cancellation provision in my contract. Is this legit? I mean its true my contract doesnt have a cancel clause, but even though I am not using their app and no longer want to use it can they really sue me over it for the term they stated?


Generally, if you've signed a hosting contract for a specified period of time and the contract doesn't allow for cancelation or include a buy-out clause, then you owe the balance of the contract whether you continue to use the service or not. It's sort of like a health club membership.



The people at that company are being despicable.


Nobody here can tell you if what they're saying is "legitimate" in any kind of legal sense because we have not seen whatever documents you signed. There is not one standard model for this kind of agreement. The gym I have a membership with... You can cancel at any time, no penalties, no questions asked. And it is a HUGE national chain. But I was previously at a different gym part of another major chain, and you wouldn't believe the almost insurmountable task it was to cancel my membership there!


Think of contracts with hosting companies and web application providers that way. Not all the same.

The original poster asked "can they really sue me over it for the term they stated?"


There is a difference between "having no cancellation provision and also having no term of service mentioned"




"there is no cancellation provision but a term of service is actually specified"


This is an important distinction, and it is something you should get clear in your mind before doing anything.


None of this is actually an Upwork question, though, is it?


(not that I mind you asking; just saying...)