Quote:
|
Originally Posted by SmokeyTheBear
hmm i dunno about that .. how do cell phone companies get away with charging you for the full contract even if you only use the srvice a month , then cancel ?
|
Which is exactly the reason why they have an early termination fee or cancelation fee. Otherwise they wouldnt be able to collect from breaking the contract.
It all comes down to this when breaking contracts; ACTUAL DAMAGES. A party is not allowed to profit due to another party breaking a contract. So lets take this server company for example, lets say he breaks his contract and the next month they lease the server to someone else. Should they be allowed to make twice as much for the next 8 months on that server? No, he is only responsible for the time the server is not being leased, which would be their actual damages.