ISP contract cancellation

D

darrencon

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We have a contract for a peer to peer link with a Wireless service provider. We have 4 years left and if we cancel, they say we have to pay up for the entire contract? It will cost us over R400 000 to cancel.

I thought nowdays companies were not allowed to do this? They are a member of the ISPA. Do you think they can help?
 
darrencon said:
We have a contract for a peer to peer link with a Wireless service provider. We have 4 years left and if we cancel, they say we have to pay up for the entire contract? It will cost us over R400 000 to cancel.

I thought nowdays companies were not allowed to do this? They are a member of the ISPA. Do you think they can help?
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Section 14 of the Consumer Protection Act entitles consumers to cancel fixed term contracts with 20 business days notice and limits suppliers to a "reasonable" cancellation fee. However, this entire section does not apply to fixed term agreements between juristic persons (e.g. close corporations; registered companies) regardless of their turnover or asset value. So unless you contracted your service provider in your personal capacity, you will have no recourse as far as the CPA is concerned.
 
Chevron said:
And did they install equipment on your premises?
Click to expand...

5 years and yes they installed equipment in our offices. We were happy to sign 5 years as it brought the price down but all of a sudden there is fibre available for our office park at very good prices.
 
What does the service cost per month? And what is the cost of the equipment they installed?
 
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