How a Software & It Services Business Hired a Lawyer to Draft a Software Subscription Agreement in California

Your software subscription agreement has a termination clause outlining the notice period and potential penalties for early termination. It is possible, but unlikely, that you can simply cancel. From a practical perspective, once you know the terms, contact the company and ask if you can cancel without penalty. Even if they say no, some software companies will allow you to drop down to a less expensive plan without penalty. Reading your agreement is your best first step. Some companies will work with you. Some will auto-renew you without notice. Once you know the terms, calendar them for this product and others to track your renewals.

Hello! Under California law, a breach of contract occurs when one party fails to fulfill a legal duty the contract created and causes damages for the defendant. (California Civil Jury Instructions Number 303.) The measure of damages is the amount that will compensate the aggrieved party for all the detriment caused thereby or likely to result therefrom. (Cal. Civ. Code § 3300.) Any contract entered into after January 1, 1986 that does not stipulate the legal rate of interest, the obligation shall bear an interest rate of 10% per year after the breach. (Cal. Civ. Code § 3289.)   This applies regardless of whether the agreement was written or done orally. Typically, the aggrieved party is entitled to be returned to the same position they were in before the breach.  In your case, you said that the subscription agreement doesn't have the functionalities you expected. Because it's not functioning like you intended, and if you have made reasonable efforts to resolve this in good faith, then it is a breach of contract. Because it is a breach, you can suspend your own performance in this case and sue for any actual or consequential financial damages you've suffered. The quicker, informal option is to send a demand for performance. Because this situation is so common, I drafted a template myself to help with this so you know it's legitimate - https://www.contractscounsel.com/t/document-form-checkout/119 You can file a lawsuit in your local court. If you’ve already sent a bunch of letters, then the truth is this is the only way to compel them to do anything. You can also talk to me about drafting a letter, too. Best of luck! Dolan