A termination of the service contract can be initiated as long as it has been established that it is a contract that has been properly concluded.3 min Read Calculate the penalties according to your personal situation. Add all basic cancellation fees plus all applicable fees during the term of the contract. For example, a two-year service contract for 5000 $US. After one year of termination, a one-year commitment remains on the contract. 50% of the contract remains worth $2500. Due. This is your maximum responsibility for the contract. You can buy for this amount of money from the contract, regardless of the conditions. Common examples of service contracts are mobile phone contracts, Internet service contracts, and extended warranties. .