Q. My business recently entered into a 2 year contract with a telecommunications company for cheaper call charges. We are now 6 months into the contract and there are better deals out there. We would therefore like to terminate the contract but there is no early termination clause (I had assumed this would be standard). Is there anything we can do?
A. Businesses are free to contract upon whatever terms they think fit. It is therefore vital that all such contracts are scrutinized before they are signed to ensure that all of the relevant terms are expressly set out it writing. Do not assume that certain terms will be included; ensure that they are.
Here, there is no early cancellation clause. Whilst it is possible for you to argue that such a clause should be implied into the contract, to succeed in such an argument you would need to have good grounds. For example, if you could show that you discussed this prior to concluding the agreement and the parties intended such a clause to be included, then you would have a chance. However, if there were no such discussions then your position is more difficult as early termination clauses are, by their very nature, inconsistent with fixed term contracts.
I suggest therefore that you have the contract reviewed by a Solicitor (and I can recommend a very good firm if that assists?) who will be able to check whether there is any ambiguity in the definition of the fixed term or any of the other provisions in the contract which may give you some leverage to argue for an early release. If there aren't, then the only other way you could terminate the contract would be if you could show that phone company have committed a "repudiatory breach" of the contract. For example, if your call charges were not in fact "cheaper" than had previously been the case.
