contract-law business fraud
Can a company withdraw their decision without compensation?
<p>A company allows eligible person to use their service at a discounted rate. Somebody would like to enjoy the discount but was not 100 percent sure about his eligibility. He then simply submitted the application, provided no fake documents, and the application was approved. The time was 2015.</p>

<p>That person needs to renew his subscription annually, and the most recent (and successful) renewal occurred on March 2017. Before that the T&amp;C has changed, of which the person is not aware. Additionally, the T&amp;C applicable to the every-year subscription is the then-effective one at the time of renewal.</p>

<p>On June 2017 the company decided to terminate the service to the person because they think he is not eligible. In the T&amp;C the company does have the right to "verify the eligibility of the person and terminate the service to the ineligible at any time". However before the termination the person has made several successful payments (on a monthly basis), which are also accepted by the company. I may safely assume here that the company has approved the person's eligibility for this year's subscription? And since the most recent renewal there is no change in the T&amp;C, and no change in the person's status since 2015, from which I would like to assume no reason for invalidation of his eligibility.</p>

<p>Is my logic legally valid?</p>

<p>Location: WA, United States</p>

<blockquote>
  <p>the company does have the right to "verify the eligibility of the person and terminate the service to the ineligible at any time"</p>
</blockquote>

<p>is pretty unambiguous.  They have assessed your eligibility, determined you don't have one and have terminated the service. They are completely within their rights to do this.</p>

<p>If you feel that they have assessed your eligibility wrongly then you can dispute their assessment - either through whatever dispute resolution is detailed in the contract or by going to court if the contract is silent.</p>

<p>The fact that they previously assessed you as eligible (or didn't actually make an assessment) is irrelevant.</p>

<p>If the company's entitlement to "<em>terminate the service at any time</em>" was established prior to the changes in the T&amp;C, then it does not need to wait till the next renewal. The same applies if such right was part of the changes in the T&amp;C and the person was unaware due to his own negligence.</p>

<p>By contrast, if the entitlement was part of the changes in the T&amp;C and the person was unaware of them because the company neglected to properly notify thereof, then the person could argue on the basis of <em>promissory estoppel</em>:</p>

<p>To obtain recovery in <em>promissory estoppel</em>, plaintiff must establish</p>

<p>(1) [a] promise which (2) the promisor should reasonably expect to cause the promisee to change his position and (3) which does cause the promisee to change his position (4) justifiably relying upon the promise, in such a manner that (5) injustice can be avoided only by enforcement of the promise. <a href="https://www.leagle.com/decision/1994282124wn2d1581274" rel="nofollow noreferrer">Havens v. C &amp; D Plastics, Inc., 124 Wn.2d 158, 170-172 (1994)</a>.</p>

<p>If the person is able to prove the elements of <em>promissory estoppel</em> (under the assumptions of newness of the company's right to "terminate at any time" and improper notification thereof), the company might be ordered to maintain service for the rest of the contract year.</p>
