Contracts opened for unemployed individuals - Ridiculous

My son is 19 years old and a student at Richfield College, a gym contract was opened for him without proof of residence or proof of employment. He does not earn a salary. How can a contract be opened for a person without these criteria's? I requested his contract be terminated and was told that I need to pay a cancellation fee of R2195 - which is so ridiculous. I don't have funds to pay that amount and neither does my son, We would like cancel this contract as I feel that this was unprofessional and they cannot go into a signed agreement without a person working. I need your assistance and would like to cancel this contract with immediate effect. My son is still living with me and I pay for his studies on a monthly basis, I cannot afford a gym fee. It was his mistake to open the account as well but I am think that the process of opening a new account for an individual is absolutely wrong.