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damiayang15's avatar

Is there any way to void or cancel contract?

Asked by damiayang15 (1points) June 19th, 2014

I did something very wrong. I signed an equipment lease where I agreed to pay 1600/mo for 3 years on a 35,000 loan. I thought the lease had a no prepayment penalty, but I did not find anything in writing referencing that after reviewing the contract afterwards. It appears that I will be the one responsible for the full term balance regardless of anything. I trusted the lease rep and signed without checking this clause was included. Lease company paid the distributor on 6/27 but since the equipment has not been delivered yet is there any way to void or cancel the contract? The equipment will come from Singapore and it will be delivered here in Jakarta in less than a week. I should have gone for Axis Capital Group, http://www.axiscapitalinc.com/!

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2 Answers

JLeslie's avatar

I don’t understand, is it a lease or a loan? If it is a loan to buy it, it is standard procedure to have to pay the entire amount. A prepayment penalty is when you want to pay the loan early and there is a surcharge. For instance, let’s say you have the equipment for a year and then sell it to someone else and want to pay off the loan. If you still owe $25,000 on the loan then that is your pay off amount. If you have a prepayment clause in the contract then it would be the $25,000 plus the penalty. The neatly might be 1% for instance, so you have to add that amount to get out of the loan.

If it is a lease, it also is common to owe the entire amount of the lease agreement whether you utilize the item for the full term or not. Some leases will not keep you on the hook if they are able to lease the equipment out to someone else. Or, if there is a clause that you give them some sort of notice, like 3 months notice you are returning the equipment, and then maybe you only lose an extra month or two beyond your three month notice.

You can get out of a contract if both parties agree to void the contract, but if you have a loan, I have personally never seen someone get out of a loan from a bank. If it is a loan with the company directly, or a private loan there is a possibility, but probably a slim possibility.

If there is a law to protect you, maybe a law where you can change your mind within 3 days, or something similar, I would have no idea about that where you live, but probably it is unlikely. A lawyer could help you.

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