A cancellation fee is a charge for ending an agreement early. Pay a cancellation fee, a hefty cancellation fee.
It must be a genuine estimate of the loss rather than a punishment, or it can be challenged. A cancellation fee larger than the remaining cost is the usual sign of an unfair term.
1nouncancellation feeA charge for ending an agreement early.
“Leaving the contract early carried a cancellation fee of ninety pounds.”
cancellation fee is a charge.
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