Best examples of sales agreement examples with cancellation terms in 2025

Real‑world examples of sales agreement examples with cancellation terms

Let’s start with what everyone actually wants to see: real examples of sales agreement examples with cancellation terms pulled from common business scenarios. These are simplified, but they mirror language used in 2024–2025 contracts across software, services, and consumer sales.

Example of a simple product sales agreement with a 30‑day cancellation window

Imagine an online retailer selling physical goods to U.S. consumers.

Sample clause:
“Buyer may cancel this Sales Agreement for any reason within thirty (30) days of delivery by providing written notice to Seller. Upon timely cancellation, Buyer shall return the Products in their original condition within ten (10) days. Seller will refund the Purchase Price, less any original shipping charges, within fourteen (14) days of receiving the returned Products. Custom or personalized Products are not eligible for cancellation or refund.”

Why this works:

• Sets a clear time limit (30 days) and a method (written notice).
• Distinguishes standard goods from custom goods, which are often non‑refundable.
• Aligns with common e‑commerce expectations in 2024, where 30‑day returns are standard in many markets.

If you’re selling to consumers, remember some countries and U.S. states have mandatory return or cooling‑off rights that override your contract language. The U.S. Federal Trade Commission (FTC) explains cooling‑off rules for certain door‑to‑door and off‑premises sales here: https://www.consumer.ftc.gov/articles/buyers-remorse-when-ftcs-cooling-rule-may-help

SaaS subscription: examples of sales agreement examples with cancellation terms for auto‑renewals

Software‑as‑a‑Service is where cancellation terms get contentious. Customers hate dark‑pattern auto‑renewals; regulators are watching them closely.

Sample clause (annual SaaS subscription):
“This Agreement has an initial term of twelve (12) months and will automatically renew for successive twelve (12) month periods unless either party provides written notice of non‑renewal at least thirty (30) days before the end of the then‑current term. Customer may cancel this Agreement for convenience at any time upon thirty (30) days’ written notice; however, amounts paid are non‑refundable and Customer remains liable for all fees for the then‑current term.”

Updated 2024–2025 trend:
Regulators in the U.S., UK, and EU are pushing for clearer auto‑renewal disclosures and easy online cancellation. If you’re selling to consumers, review guidance on negative option billing and subscription traps from the FTC: https://www.ftc.gov/business-guidance/resources/negative-option-rule

This is one of the best examples of sales agreement examples with cancellation terms for B2B SaaS because it:

• Separates non‑renewal (end of term) from early cancellation (during term).
• States clearly that fees are non‑refundable even if the customer cancels early.
• Provides a predictable notice period (30 days).

Professional services: example of a consulting agreement with staged cancellation fees

For consultants, designers, and agencies, time is the product. Cancellation terms need to protect your time investment.

Sample clause:
“Client may cancel this Agreement for convenience upon written notice to Consultant. In the event of such cancellation, Client shall pay: (a) all fees incurred for Services performed through the effective date of cancellation; and (b) a cancellation fee equal to twenty percent (20%) of the remaining fees that would have been payable under this Agreement, in recognition of Consultant’s reserved capacity and lost scheduling opportunities.”

Some of the best examples of sales agreement examples with cancellation terms for services use a sliding scale. For instance, you might:

• Charge a smaller percentage if cancellation occurs more than 60 days before a project start date.
• Increase the percentage as you get closer to the start date or key milestones.

Just be sure your cancellation fee is defensible as a liquidated damages amount, not a punishment. U.S. courts generally enforce reasonable pre‑agreed damages but may reject clauses that look purely punitive. Many law schools (for example, Cornell Law School’s Legal Information Institute) provide plain‑language explanations of liquidated damages: https://www.law.cornell.edu/wex/liquidated_damages

Retail installment / big‑ticket consumer purchase: examples include cooling‑off and financing terms

Think furniture, appliances, or home fitness equipment sold on installment plans. Here, cancellation touches both the sale and the financing.

Sample clause:
“Buyer may cancel this Agreement without penalty before delivery of the Goods by providing written notice to Seller. If Buyer cancels after delivery but within seven (7) days, Buyer shall return the Goods at Buyer’s expense and Seller will refund all amounts paid, less a restocking fee of ten percent (10%). After seven (7) days from delivery, this Agreement may not be canceled for convenience and Buyer remains obligated to pay all amounts due under any related financing agreement.”

This kind of language shows up in real examples of sales agreements for financed purchases because it:

• Draws a line between pre‑delivery and post‑delivery rights.
• Ties cancellation of the sale to the status of any financing agreement.
• Uses a stated restocking fee, which helps avoid disputes later.

Event or venue contracts: example of a staged cancellation schedule

Event venues, caterers, and wedding vendors live or die by cancellation terms.

Sample clause:
“Client may cancel this Agreement at any time by providing written notice to Vendor. If Client cancels: (a) more than ninety (90) days before the Event Date, Vendor will refund all payments received, less the non‑refundable Deposit; (b) between ninety (90) and thirty (30) days before the Event Date, Client shall forfeit fifty percent (50%) of the Total Fee; and (c) fewer than thirty (30) days before the Event Date, Client shall remain liable for one hundred percent (100%) of the Total Fee.”

This is one of the clearest examples of sales agreement examples with cancellation terms for events because it:

• Uses specific time bands and percentages.
• Calls out a non‑refundable deposit separately.
• Reflects the reality that last‑minute cancellations are very costly for the vendor.

B2B product distribution: example of termination for convenience vs. for cause

In longer‑term supply or distribution agreements, “cancellation” is usually framed as termination.

Sample clause (for convenience):
“Either party may terminate this Agreement for convenience upon ninety (90) days’ prior written notice to the other party. During the notice period, the parties shall fulfill all outstanding Purchase Orders. No termination fee shall apply.”

Sample clause (for cause):
“Either party may terminate this Agreement immediately upon written notice if the other party materially breaches this Agreement and fails to cure such breach within thirty (30) days after receiving written notice thereof.”

Here, the examples of sales agreement examples with cancellation terms emphasize:

• Different treatment for for‑cause vs. for‑convenience termination.
• A cure period to fix breaches before the nuclear option.
• Protection for existing purchase orders so operations don’t collapse overnight.

Online consumer subscriptions: examples include easy one‑click cancellation

2024–2025 enforcement trends are crystal clear: consumer subscription sellers need straightforward cancellation.

Sample clause:
“Customer may cancel a month‑to‑month subscription at any time, effective at the end of the then‑current billing period, by using the ‘Cancel Subscription’ feature in Customer’s online account or by contacting Customer Support at the methods listed on our Website. Prepaid amounts are not refundable, except where required by applicable law.”

This reflects best practices in modern examples of sales agreement examples with cancellation terms for consumer subscriptions:

• At least one online self‑service cancellation pathway.
• Clear statement that cancellation is effective at period end.
• A nod to “where required by law,” which matters because some states now mandate easy online cancellation and specific disclosures.

For more on subscription and automatic renewal rules, see FTC guidance on negative options: https://www.ftc.gov/business-guidance/resources/negative-option-rule

Key elements to borrow from the best examples of sales agreement examples with cancellation terms

Looking across those scenarios, effective cancellation clauses tend to share several traits. When you review real examples of sales agreements, pay attention to how they handle:

1. Timing and notice

Every example of a solid cancellation clause answers:

• How long the buyer has to cancel (days from signature, delivery, or event date).
• How cancellation must be delivered (email, portal, certified mail, etc.).

Ambiguity is where disputes live. Phrases like “within a reasonable time” are invitations for arguments. Stronger examples of sales agreement examples with cancellation terms use hard numbers and simple methods.

2. Money: refunds, credits, and non‑refundable amounts

The most practical examples include:

• Whether payments made are refundable, partially refundable, or non‑refundable.
• How long refunds take to process.
• Whether refunds are in cash, credit, or future service.

If you charge non‑refundable deposits or restocking fees, say so plainly and repeat it near the signature or checkout button. In 2024, regulators and courts are less tolerant of “gotcha” fees buried deep in terms.

3. Special rules for custom work or perishable goods

Custom goods, personalized items, and perishable products are often carved out. Many of the best examples of sales agreement examples with cancellation terms:

• Allow cancellation for standard items.
• Limit or exclude cancellation for made‑to‑order or quickly expiring goods.

This tracks consumer law trends in the U.S. and EU, where custom and perishable items are commonly treated differently in return and cancellation rules.

4. Interaction with mandatory consumer protection laws

Your contract does not exist in a vacuum. In some contexts, the law gives buyers non‑waivable cancellation rights. A classic U.S. example: the FTC’s Cooling‑Off Rule for certain sales made at a buyer’s home or temporary locations, which can give a three‑day right to cancel. You can read about it here: https://www.consumer.ftc.gov/articles/buyers-remorse-when-ftcs-cooling-rule-may-help

If your customer is a consumer, or if you’re selling in heavily regulated sectors (financial services, health‑related products, education), always:

• Check federal and state rules.
• Make sure your “no cancellation” language doesn’t conflict with those rules.

Universities and public agencies often publish accessible overviews of consumer contract law. For example, Harvard’s Program on Negotiation regularly discusses contract terms and dispute patterns: https://www.pon.harvard.edu (search their site for contract articles).

Drafting your own: how to adapt these examples of sales agreement examples with cancellation terms

You don’t need to reinvent the wheel, but you also shouldn’t copy‑paste blindly. Here’s how to adapt the best examples to your situation.

Match the clause to your business model

If you’re:

• Selling one‑off physical products: focus on return windows, product condition, and who pays shipping.
• Running a subscription or membership: clarify renewal cycles, cut‑off dates, and whether partial periods are refundable.
• Providing services: emphasize notice periods, work already performed, and cancellation fees that reflect real lost time.
• Locking in long‑term B2B relationships: distinguish between termination for cause and for convenience, and spell out how existing orders or projects are handled.

Each model calls for a different flavor of cancellation language, but they all benefit from the patterns you see in real examples of sales agreement examples with cancellation terms.

Use plain English, not theatrical legalese

Your customer should not need a law degree to understand how to cancel. Short sentences, clear headings, and concrete examples beat archaic phrases every time. Courts increasingly look favorably on contracts that regular people can actually read.

Align your contract with your actual process

If your clause says “email us to cancel,” but your support team only monitors a ticketing system, you’re setting yourself up for a fight. The best examples of sales agreement examples with cancellation terms align with real operational workflows:

• If cancellation must go through a portal, say so and keep the link stable.
• If you accept phone cancellations, train staff on what to document.
• If you require a specific form, make it easy to find.

Keep an eye on 2024–2025 regulatory trends

Regulators in the U.S., UK, and EU are heavily focused on:

• Dark patterns that make cancellation harder than signing up.
• Automatic renewals without clear, conspicuous disclosure.
• Hidden fees that appear only after the buyer tries to cancel.

Following the patterns in current examples of sales agreement examples with cancellation terms—especially those used by large, well‑advised companies—can help you stay closer to the regulatory mainstream.

FAQ: examples of common questions about cancellation terms

Q1: Can I use one generic example of a cancellation clause for all my contracts?
You can try, but it’s usually a bad idea. Product sales, SaaS subscriptions, and consulting services face very different risks. Better to start with tailored examples of sales agreement examples with cancellation terms for each line of business and keep them consistent within that category.

Q2: Are non‑refundable deposits always enforceable?
Not always. Courts look at whether the amount reasonably reflects expected losses if the buyer cancels. If your “deposit” is effectively the entire contract price, a court might treat it as an unenforceable penalty. This is where reviewing real examples and, ideally, getting legal advice pays off.

Q3: Do I have to offer a cooling‑off period in every sales agreement?
No. Many transactions—especially standard online purchases—do not have a legally mandated cooling‑off period in the U.S. But some door‑to‑door sales, timeshares, and other regulated products do. Always check sector‑specific rules and use examples of sales agreement examples with cancellation terms that match your regulatory environment.

Q4: What are examples of red flags in cancellation clauses that scare off customers?
Buyers tend to balk at: total forfeiture of all payments with minimal notice, vague language about “administrative fees” with no amount listed, and cancellation methods that feel like a maze (fax only, limited‑hours phone lines, or postal mail for online services). Most modern examples of sales agreement examples with cancellation terms avoid those tactics because they hurt trust and invite regulatory attention.

Q5: Should I let customers cancel by email or require a portal?
Either can work, as long as it’s clearly described and actually monitored. Many of the best examples of sales agreement examples with cancellation terms offer both: a self‑service portal for convenience and an email or phone backup for accessibility.

The bottom line: study real‑world examples of sales agreement examples with cancellation terms, then adapt them to your risk tolerance, your industry, and the laws that apply to you. When in doubt, have a qualified attorney review your draft before you roll it out at scale. A few hours of legal time is far cheaper than a lawsuit over a sloppy cancellation clause.