Are annual contracts so "annual" in fact?
Artur Bunkow
Waves making IT headhunter ? Technical Recruiter ? Banking & Fx ? Vilnius ???? ? Limassol ????
Due to my autumn reside to Cyprus I entered a plenty of agreements, appearing quite massive, but not as it is after deeper review.
Living
Some of us still consider entering the 12mo living contract like having a solid obligation to live there literally 12 months, otherwise - get charged for the difference as a penalty. Sounds horrifying.
Not quite. Tenancy agreement usually has early termination notice period, which is (usually) about the value of deposit and notice period (ideally 30 days). Tenant is able to terminate the contract earlier just informing about his will [30] days prior to departure and limiting his liability with loosing the deposit value.
Negotiate wisely while entering the agreement, because by default landlords ask for 2-3mo deposit / 60-90 days notice.
Mobile
While purchasing the local SIM-card I was offered with a very attractive rates coming with annual contract. Also in Cyprus you are only able to take eSim while having annual contract.
I read the agreement and found that contact could be terminated at any time, only 1mo fee is subject to charge.
My method was very simple
领英推荐
I directly asked: "What is the exit fee?"
Next step - I asked to show me that in the contract.
Services
When a company hires engineer under B2B and uses term "annual", engineer has to clearly understand that:
According to my personal observations, provision of services cannot be annual by definition. In terms of provision of services "annual" is no more than intention, but not obligation.
Any side of the contract is able to leave the contract at any time. Only exit fees and notice period might be subject to charge if mentioned correctly in a contract.
Also keep in mind that even deposit is not a huge guarantee, because all the funds placed for the unused services are subject to refund.