It says that I will pay $XXX per month, automatcially deducted from my checking account, for 12 months and that it is not breakable even if I am unable to utilize the services. It spells our late fees and legal action if I have insufficient funds to cover the automatic withdrawal. That's pretty much it.
It's similar to a health club that I almost joined once, except the health club had many, many different classes and services and was breakable if I moved.
I would frankly inform that sensei that you would like to train at this dojo, but not under unreasonable terms. i would explain that there needs to be some reasonable reasons to end the contract such as relocation, medical reasons, loss of employment..... If that teacher is not willing to reconsider this unreasonable contract, then I would widen your search and be willing to travel longer to find competent training under reasonable terms. I am truly sorry that this teacher has such a contract and you have such limited options.