Re: Evergreen Clause

[tourman <robercampbell@xxxxxxxxx>]

On Nov 16, 12:35 am, Matt Ion <soundy...@xxxxxxxxx> wrote:
> Jim wrote:
> >> With my cel provider, I have the option to sign up for service three
> >> years at a time, and in exchange I get a new phone for free or cheap
> >> (shorter contracts are also available, with lower subsidies on new
> >> phones). =EF=BF=BDYet when my contract is up, it's not automatically re=
newed for
> >> me - I just keep going along at the same monthly rate, on the same
> >> airtime plan, until such time as I decide to renew or cancel. =EF=BF=BD=
And I can
> >> cancel anytime I want after the contract is up, no penalties, no
> >> keep-paying-until-the-end-of-the-month.
>
> > Yeah but obviously, in the alarm industy, we just can't let contracts
> > run out due to the limitaion of liability etc etc.
>
> Fair enough, but why does it have to be under contract?  With my cel
> service, it doesn't just STOP WORKING when the contract is up -
> everything still works exactly as before, I'm just no longer obligated
> to keep my service for a set amount of time.

RHC: I believe that is the way most contracts are generally applied.
At least in the case of ADT, once the contract is up, it goes monthly.
I know that all of the active ADT contracts I "takeover" are that way
anyway. Could be there are other large nationals that don't apply
things this way though.

I doubt there is any "limitation of liability" associated with a month
to month alarm contract, just an exposure to having the customer being
"in the driver's seat" for the first time. The terms of the contract
still apply, just the term is different.