Consumer Law, Warranties Contract cancellation problem please help...

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eddykye

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My jurisdiction is: california O.C US

my name is eddy and i have a restaurant in CA

a person from 'Mission LINEN & UNIFORM SERVICE' came to talk with me to do buisness.

i asked them is there any years of contract i have to stay with you guys? and he said no.

after i signed a contract i saw this statment.

In the event of cancellation of this agreement for any reason customer agrees to (a) purchase the entire inventory of items in service OR otherwise held for customer's use at current replacement cost, (b) pay all outstanding amounts owed to Mission and (c) as liquidated damages and not as a penalty 50% of the average weekly amount invoiced curing the month preceding the breach.

My question is if i want to cancel the agreement whatever the reason is , can i just

purchase the entire inventory of items in service(meaning the items that i currently have?)

and be done with the agreement?

or do i have to pay penalty (b) and (c)???
 
The contract says (a), (b), and (c). "And" means all three. If you cancel and just pay (a), expect to be sued by Mission for (b) and (c).

I would note that (b) is not a penalty, it's just paying what you owe. The contract also paints (c) as not a penalty either, although IMHO that might be disingenuous.
 
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