For DS's preschool (which was PK to 5th), there was a contract like that. You were responsible for the whole year's tuition, which had to be paid in full by the 4th month of school. If you left the school and they were able to fill your spot, then you'd get a pro-rated portion of your money back. If they couldn't fill your spot, you were out of luck. We didn't mind it for PK because there was a long waiting list, so we figured it wasn't much of a risk. We would have been uncomfortable with it for K and later, though, where there wasn't as big a demand.
If I were you, I'd definitely talk with them about what happens if you and the school can't come to a meeting of the minds about something, and see if you can alter the contract. Of course, you might become that "pain-in-the-neck family" by doing that, but it may be worth it to you.
Last edited by Mama22Gs; 03/01/11 05:36 AM.