KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE

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more on vendor agreements
November 29, 2018
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more on vendor agreements
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Ken,
            With these vendor agreements we place a note on their form that it applies only to on-site work, e.g.  if we damage or harm while we’re physically on-site their agreement prevails.
The monitoring agreement is sine qua non.   99% of the time our monitoring agreement is attached to their vendor agreement.  For the 1% we walk away.
            Best Regards,
Barney O’Donnell
HSI Security Systems, Inc.
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Response
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            I think that's a good policy
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another comment
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Ken
            I just received a vendor contract that has this verbiage in it:
            "None of the terms and conditions contained in this contract may be added to, modified, superseded or otherwise altered except by a written instrument assigned by an authorized representative of the Agent"
            Does that mean that the Commercial All-in-One could still supersede if they sign that and we sign this vendor contract?  Or do you think it would be wise for you to look at the contract and get involved that way?
Respectfully,
Megan
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Response
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            Great question.  
            The All in One agreement has a provision that states that its terms govern whether another document is signed before, concurrently with or after the All in One.  So, it would seem clear enough.
            The vendor agreement you quote from above states that it can't be changed or superseded unless authorized by the vendor.  Well, the All in One isn't changing the vendor's agreement, it's making its own agreement.  I suppose it does seek to supersede the vendor agreement, but since the vendor is signing the All in One, the vendor has approved it.  This of course is merely my argument, position.  Only the judge gets to decide, and unfortunately that's within the confines of litigation.  [although the All in One has an arbitration clause and that may govern].  
            Here's your dilemma.  If you don't say anything and the two forms get signed we really won't know which prevails until a judge or arbitrator decides.  If you do bring up the issue the vendor may strengthen its contract terms to make clear it controls, or may refuse to sign your All in One, with or without the provision for controlling terms.  Which way do you go?
            One option is to walk from the deal because you won't sign a vendor agreement.  Let's say that's not an option here, the deals too sweet and in any event you're heavily insured and willing to take your chances.
            If you do say something the vendor may agree to your terms, or may refuse to sign your contract or make clear its contract governs.  You have to assess the vendor and your relationship to decide your chances of a successful negotiation.  I get called upon to negotiate these contracts on a regular basis.  Almost all work out, but there is a cost to the alarm company,, so the deal needs to be worthwhile.
            If you don't say anything, sign both contracts, you've got at least a 50/50 chance your contract will prevail and govern.  The issue may never arise because there may never be a dispute.   
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Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden City Plaza
Garden City, NY 11530
516 747 6700 x 301
ken@kirschenbaumesq.com
516 747 6700
www.KirschenbaumEsq.com