Can you cancel a lease, gym contract or cellphone contract early?
A fixed term agreement governed by the Consumer Protection Act, such as a lease, gym contract or purchase of goods or services, can be cancelled early for any reason.
Sections 14 (2) (b) and (3) of the Act provides that where there is a cancellation of a fixed term agreement, it would be without penalty if it's at the termination of the fixed https://www.cgso.org.za/cgso/advisory-notes/, or subject to a "reasonable penalty" if cancelled on 20 busines days notice, such penalty taking into account and being "in contemplation of the agreement enduring for its intended fixed term" - Sec 14 (3) (b) (i). In the case or early cancellation of a gym contract or lease, the gym or landlord, as the case may be, would be entitled to impose a reasonable penalty, but can't deny you the right to cancel.
There is a lot of confusion as to what a "reasonable penalty" may be and the Community Goods and Services Ombudsman has released an Advisory Note dealing with this.
Advisory Note 12 may be downloaded off this link provided, as well as other advisory notes you may also find helpful.
Contact Mc Naught and Co should you require any help.