Okay , this is my perspective as an owner of an Entertainment company.
1. You NEVER signed the contract, hence you never technically entered any agreement. However, they have proof of payment; the 175. However , this 175 does not correlate to the 125 written on the contract anyhow ! ! So, even if they argument is made that you entered into the agreement based on the fact that you payed the 175, YOU NEVER AGREED TO THE TERMS OF THE CONTRACT. So the whole 'CANCELLATION OF ANY SERVICE MAY RESULT IN ADDITIONAL CHARGES' line , you never agreed to that, see whereI'm going with this. As an owner I keep your deposit (or transfer to another date withing 6 months) and you go along your merry way.
2. As an owner, if a date is cancelled in advance , the deposit is always kept. Many contracts have a clause to recover lost profits from a cancelled contract, I HAVE NEVER ATTEMPTED to collect the rest of the balance, thats ridiculous (granted the contract was cancelled in a reasonable amount of time ,and not the week before)
Bottom line I wouldn't worry about anything ,except for loosing your deposit. In order to actually collect the 'additional charges', they would essentially have to take it to small claims court, it's not worth the hassle to most companies.
MAKE SURE YOU DO SIGN A CANCELLATION ORDER ! ! ! This is to ensure that the company does not keep your contract on file, and actually attempt to carry it out, as if it were never cancelled. This would create a situation where two different companies show to perform , the cancelled one , as well as the new one. At this point , if the company really wanted to be , lets say not nice, they could charge you the remaining balance, they showed, you can never 'technically prove' you cancelled, thus you basically 'technically' owe them the balance. Get my drift ? ? Yea, really sneaky and bad business, but eh , that can happen. SO GET A CANCELLATION ORDER FROM THEM , on their letterhead , signed by the same individual who signed your original.
Hope that helped. Don't worry about the 'additional charges', get the cancellation order taken care of , and shop for another company.
Happy Planning, and again , all the above is speaking in a 'for instance' I do not know of any company who would not just drop it , its a year away ! If this is wordy, I apologize.
Best Wishes ,
Dennis
Dr. Dance Entertainment