Here are related questions regarding alarm company termination of
service. Alice Giacalone of Brakke-Schafnitz Ins Brokers sent these
questions to me from her clients.  The answer to questions is below.


Questions:
1.  Company installs alarm system. Client pays deposit but fails to pay
balance. Company disconnects system without giving the client
notification. Client suffers a loss, is company liable.
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2.    We sell and install a system. Customer pays half and fails to pay
balance of install, and has paid no monitoring. Alarm company disconnects
system from Central Station with no notification to client
+++++++++++++++++++++++++++++++
Answer:
    The first general rule that comes to mind is that a party to a
contract that breaches that contract has no right to expect the non
breaching party to continue performance of the contract.  Therefore, the
simple answer is that the alarm company can terminate service upon the
subscriber's default.  That however is too simple.  The relationship of
the parties is governed by the contract terms, and you have to look to
that contract for what rights, obligations and remedies the alarm company,
and the subscriber, have.
    For example, your contract may require you to give some form of notice
of default by the subscriber before you can take action.  There may be a
cure period.  The contract may specify what action you can take, itemizing
order of severity with disconnect only a last option and only after
certain types of notice.
    On the other hand, your contract may permit immediate termination,
with no notice.  In that case your concern needs to be that the subscriber
had better be in default when you terminated.
    I have had alarm companies send me contracts for collection where the
subscriber has defaulted on only one contract and not all the ones that
the alarm company wants to sue on.  If you have a fire alarm contract and
burglar alarm contract, a breach of one does not trigger a breach of the
other, unless the contracts have a tie in.  So, if you have a subscriber
default on the burglar alarm contract and you unilaterally disconnect the
fire alarm system, you have a problem.
    If you are required to report a disconnect to a municipal authority,
such as NYC Fire Department, then you have to notify them even if your
contract doesn't mention that.
    If you don't have a written contract, or if your contract is silent on
the issue [like most proposals are] then I suggest that you not disconnect
without notice.  You should be guided by common sense, which you probably
don't have if you're not using a properly written contract.  [sorry I had
to add that].  You can get contracts at www.alarmcontracts.com