Re: Automatic Renewal Prohibited

["Everywhere Man" <alarminstall@xxxxxxx>]

Nomen Nescio wrote:
> J. @netscape.net said:
>
> >I'm curious as to what legally happens once the contract expires.
> >Does the relationship between the alarmco and subscriber legally cease
> >to exist?  who is responsible for initiating a new contract?   If
> >something goes wrong after the contract expires like a failure to
> >dispatch resulting in a death, does the alarmco bear no responsibility
> >since there was no contract in place at the time?  If the alarmco
> >continues billing and the subscriber continues paying, does this imply
> >a voluntary extention of the contract.  It makes since to me that if a
> >subscriber wants to cancel service on a system they own, there should
> >be no reason why an alarmco should be able to hold them to a contract.
> >However, automatic renewals clauses ensure the conditions of the
> >service being provided are legally defined regardless of the terms of
> >the contract.    If the system is being leased, the customer would be
> >bound by the terms of the lease agreement regardless of services being
> >provided.
>
> Here's my guess.  When the contract expires, if the alarm company sends out
> a bill, that's an offer to renew the contract for the length of time
> covered by the bill.  If the subscriber pays it, he's accepted the offer,
> but is only bound for the period the bill covers (quarterly billing =
> quarterly contract, annual billing = annual contract).
>
> If automatic renewals are prohibited, then the alarm company has no further
> contractual obligations once the contract expires, assuming the subscriber
> doesn't pay the renewal bill.
>
> The sticky legal problem arises if the contract hits its expiration date
> and the subscriber is a month late sending in his next payment.  I would
> argue that if the subscriber continues to use the system, he's agreeing to
> the same terms that were previously in effect.
>
> But listen, you have ADT's lawyers on speed-dial.  Why not call them and
> ask, and let us know what they have to say?
>
> - badenov <

In NY the renewal offer needs to be sent either certified mail or hand
delivered to the end user 30 days prior to the conclusion of the
original term, and requires the end user's signature. Without that the
service becomes a month to month term.
It keeps alarm companies on their toes.