KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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Who signs the PERS contract and watch out for cs agreement
April 5, 2021
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Who signs the PERS contract and watch out for cs agreement
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Ken,
We want to market mPERS systems for independent living clients. We will subcontract out the monitoring service to a central station. We will perform the limited install on these systems.
How should I manage the contracts for this type of transaction between us and the end user? Should we sign the master dealer agreement provided by the central station and have the mPERS clients sign the PERS agreement? Does your Standard Form PERS agreement cover this type of relationship where we are having another central station monitor systems for us?
Are you familiar with this central station's Dealer agreement? Are there any changes you would recommend to the Dealer Agreement before I sign?
Thanks
Name withheld
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Response
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You don't indicate if the facility is paying you or you are expecting payment from the end users. If the facility is paying you then you will need to have the facility sign a contract. Because I'd prefer to have you get every end user to sign a contract too it won't matter if the facility signs a pers agreement or a commercial all in one.
The end users should sign a pers contract. That standard form comes in two forms, for use in a single state or nationwide. In your case the single state form is sufficient.
The central station contract is another matter. Because you usually use your own monitoring facility to monitor your subscribers you haven't had the opportunity to sign another central station's Dealer Agreement. [though you should have one for other dealers to sign if you monitor for other dealers]. I don't have to see this central station's dealer agreement to know that the most economical and efficient way to review and respond to the dealer agreement is with the Rider to Dealer Agreement, available as a Standard Form at www.alarmcontracts.com. Most dealer agreements are the same, though the time frames vary. Also, some are ridiculous and require overly long term relationship, exclusive relationship, right to buy your accounts, right to contact your subscribers [steal them] and other issues. The Rider addresses these issues and evens out the deal. Just get the Rider and present it to the central station; it will be the starting point to start negotiations and the central station should agree to 80% of the requests in the Rider. You will better understand your deal with the central station when you get the Rider and see what the central station agrees to, some of which, though not all,I assure you, may be in the Dealer Agreement already.
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Who signs pers agreement
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Ken
We are considering offering PERS. Who would sign the contract? Would it be the person who is buying and paying for the equipment and service or would it be the end user of the equipment?
Example. The end user may not able to sign and a family member may sign up for the service.
Mauricio
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Response
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You raise a great point. A person who is mentally incompetent is not competent to sign a contract; that person will not be held to that contract; in other words, it will be unenforceable. The person who requests your service is likely a caregiver, either relative or someone holding a power of attorney, health care proxy, legal guardianship papers or conservator appointed by the court. These people will not want to be personally liable for your service and they will want to sign on behalf of the end user. Unless the signor agrees to personally guarantee the contract [or does sign as the subscriber] the signor won't be personally liable and you will be relying on the credit worthiness of the end user. Don't invest too much in the Pers subscriber and invoice in advance because the contract can be canceled when the end user is unable to use the service [that's a general explanation, though the statutes do have some criteria for cancelation]. So a signor could sign, John Smith by Tim Smith, his agent [agent by virtue of power of attorney, court order, or even self-appointed with more or less consent and approval of the end user. Be sure to get a PERS agreement signed.
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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
www.KirschenbaumEsq.com
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