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  • Question

    Is annual software/hardware maintenance contracts which require full payment up-front considered SEVERABLE Services or NON-SEVERABLE Services?


    Answer

    The way the services were contracted and in keeping with general commercial practice this action would be considered non-severable.  It is unclear from the information provided what outcome you are aiming for.  Given that we have paid for a year's service, we would keep the contract in force as the services have been paid for already.  IF services are no longer required, it is allowable to try to negotiate some discounted amount for the remaining period for which maintenance is no longer needed.

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