Question:
My recent email regarding the notice for automatic renewal had an error (its
15-30 day window) and the topic continues to cause lot of confusion. I am
including a copy of the statute below. This is for New York only. I received
an inquiry as follows:
Question:
Ken: I am not sure your terminology on the time frame for notice of
renewal. If the contract is a five year contract the renewal is at the end of
the fifth year. We give notice via first class mail 30 days in advanced. I
understand not more than 45 days but no sooner that 15 days period to the
renewal date. Should this be no later that 15 days prior to the renewal date?
GARY FISHER
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Answer:
The statute is below. First of all you can't mail the notice by first
class mail. Here is how I would interpret the statute. Contract runs from May
1, 1998, to April 30, 2003. Contract provides that it will renew on April 30,
2003, for five (or one or anything other than month to month) unless the either
party gives notice 30 days prior thereto.
So the notice day for the sub to give notice is March 30. Your notice
would be sent March 1 to March 15.
The NY Attorney General is taking the position that it is deceptive
trade practice to continue billing and collecting the monthly charge into the
renewal period unless the notice has been sent, which is a lot more than the
statute says. Obviously it makes sense to send the notice.
This notice applies to residential and commercial.
Only way to avoid the notice is to have the renewal period as month to
month; then no notice is required.
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Statute:
New York General Obligation Law 5-903
1. As used in this section, "person" means an individual, firm, company,
partnership or corporation.
2. No provision of a contract for service, maintenance or repair to or for any
real or personal property which states that the term of the contract shall be
deemed renewed for a specified additional period unless the person receiving
the service, maintenance or repair gives notice to the person furnishing such
contract service, maintenance or repair of his intention to terminate the
contract at the expiration of such term, shall be enforceable against the
person receiving the service, maintenance or repair, unless the person
furnishing the service, maintenance or repair, at least fifteen days and not
more than thirty days previous to the time specified for serving such notice
upon him, shall give to the person receiving the service, maintenance or repair
written notice, served personally or by certified mail, calling the attention
of that person to the existence of such provision in the contract.
3. Nothing herein contained shall be construed to apply to a contract in which
the automatic renewal period specified is one month or less.