Lay The Terms

Plain-English glossary

Early termination fee

A fee charged when a contract, lease, subscription, or service agreement ends before the stated term.

Why it matters

Early termination fees can make it expensive to leave even when the service no longer works for you.

Words to watch for

early terminationliquidated damagesremaining feescancellation fee

Plain-English example

You can leave early, but you may owe a fee or the remaining balance.

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