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Can a contract for the provision of services be terminated with tacit extension?

Verified 03 October 2019 - Directorate for Legal and Administrative Information (Prime Minister), Directorate-General for Competition, Consumption and Fraud Prevention (DGCCRF)

Yes, contracts for the provision of services with tacit renewal (e.g., membership in a sports club) may be terminated within the time limit specified in the contract. Your service provider must regularly inform you in writing (letter or e-mail) of your right not to renew your contract. Without any information from him, you can terminate the contract immediately and free of charge by registered mail with acknowledgement of receipt.

A contract with tacit renewal is automatically renewed without action on your part. You do not have to make any requests to continue to benefit from the service you purchased when you signed the contract.

The contract shall be renewed regularly for a specific period: every month, every 3 months or every year for example.

The date of departure is the date of signature of your contract. For example, if your contract was signed on October 15th and provides for a monthly renewal, it will be renewed every 15th of the month.

The tacit renewal contracts shall be used in particular:

  • for a subscription to a sports club
  • or for regular delivery of type products box for example.

Please note

specific rules apply for insurance contracts, mutual funds or pension funds, telephone or internet..

Your contract must set a notice period to request termination: for example, before the 10th of each month for a monthly renewal on the 15th.

In addition, the service provider must regularly inform you in writing (letter or e-mail) of your right not to renew your contract. They must do so no earlier than 3 months and no later than 1 month before the end of each notice period. This information must be provided in clear and understandable terms. It must indicate, in an apparent box included in the letter or e-mail, the deadline for non-renewal.

This information must be issued to you at each renewal of the contract. For example, if your contract is renewed automatically every month, your provider must send you such a letter or e-mail every month.

The provisions of Articles L215-1 to L215-3 and L241-3 of the Consumer Code must also appear on the contract.

You are therefore informed twice about the possibility of terminating the contract:

  • when it was drafted,
  • and then each renewal.

Warning  

for distance financial services contracts, disclosure obligations apply only to the original contract. The contract is automatically continued if you or the professional have not expressed the will to terminate it.

You can also request an immediate termination of your contract without waiting for the automatic renewal date:

  • or for a reason specified in the contract (removal, unemployment....)
  • because you feel that the claimant is not performing his benefits properly.

The terms of termination must be stated in the contract. For example, by registered letter with acknowledgement of receipt. You don't need to give a reason. You must respect the notice specified in the contract.

If you request cancelation, your contract will end on the automatic renewal date. You will not be able to benefit from the service from this date. You must pay to the claimant the fees due up to the end date of your contract, regardless of the date on which you requested the termination.

Warning  

some contracts provide for a minimum term of service. Charges may be added if you do not meet this commitment period.

If the service provider has not provided you with the required renewal date information, you may terminate the contract immediately and free of charge by registered mail with acknowledgement of receipt.

Within 30 days, the provider must then refund you for the fees already paid for the period from the termination date to the next automatic renewal date. For example, if your contract is renewed every 15th of the month and you requested termination on the 1stto of the month, your provider must reimburse you for the period of 1to 15. In the event of non-reimbursement within the deadlines, the sums due shall be increased by legal interest rate..