Legal Term

Termination Penalties in Home Security Monitoring Contracts

Legal Definition

The contractual financial charges specified for ending a home security system monitoring agreement prior to the expiration of its initial term, often calculated as a percentage of remaining monthly fees or a predetermined lump sum.

In Plain English

Extra fees you owe if you cancel your home security monitoring service before the contract is up.

Example in a Contract
If the Customer terminates this Monitoring Agreement before the end of the 36-month initial term, the Customer shall pay a termination penalty equal to 60% of the total monthly fees remaining for the unexpired period, due within 30 days of cancellation.

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