auto renewal and extending term / new partner needs new contract October 20, 2018

KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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auto renewal and extending term / new partner needs new contract
October 20, 2018
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auto renewal and extending term
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Ken,
    I hate to keep beating a dead horse, however there seems to be some confusion, and I could be the only one confused. Here is MY question,we have a new customers who signed up using your ALL IN ONE residential contract and installed a security system. Customers has stayed with us for 5 years or more, we now want to lock them in for another 5 years of monitoring. Why is it not a good idea to use your 1 PAGE residential central station agreement? We keep all previous contracts on file. 
    We encountered a couple issues with mailing out a new ALL IN ONE contract. The customers can't seem to follow the specific instructions we send in the cover letter, like sign your name, print your name and address and mail back the white and yellow copies in the enclosed envelope. I know that doesn't sound hard but apparently it is for some. That's with the 1 page contract. 
    The ALL IN ONE to me seems like a lot of parts are not applicable like purchase price approximate date of installation etc.     
    ​Also the ALL IN ONE with the 2 pages and 3 parts per page you can't fit into a business size envelope with the cover letter and a return envelope. I think it then becomes to much trouble for the customer and they won't send it back. So perhaps you are then left with the original ALL IN ONE that is past its original term and is month to month anyway. What are your thoughts?
Thanks
John
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Response
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    Your problem is solved with a short letter:
"Dear Subscriber: Your contract with us is expiring on xxxxx. Please sign and return a copy of this letter agreeing to extend the contract terms an additional 5 years, ending xxxxx. VTY, alarm co
"agreed and consented to

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    All of the Standard Form Agreements come with month to month automatic renewal. There are many states where it's permitted to extend the contract with an automatic renewal clause for more than month to month, with any term that's agreed to. I think it's better to get a new long term contract signed, but that should also involve some new installation or incentive for the new contract.
I agree that sending an All in One to a renewing subscriber may be confusing, especially if you expect the subscriber to anything other than sign and return the contract. You should make it easy to find where the signature goes and provide a self addressed stamped envelope. Also, you should be offering some reason for the new contract; something you are giving away, like an inspection, survey, extra decals or yard sign, etc.
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new partner needs new contract
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Ken, 
    Gentlemen calls us and notifies he has evicted the person (partner I guess)who was running the business which is monitored thru us. He sent us the copy of eviction notice (signed by him, no court seal etc), we spoke to the PD officer who was on site and confirmed. Is that sufficient paperwork to prove ownership? Should we get new monitoring agreement signed by this new guy (who claims to be the owner) or just update the contacts as per his request and help him change codes? 
    We utilize your all in one Agreements. 
Please use this email 
name withheld. 
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Response
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    Sounds something like a domestic dispute; here it's a business dispute and one party ousted another. If you have a contract with the business entity and you are continuing to provide service to that entity, then no new contract is needed. If it's a new entity then you need a new contract with that entity.
    Even if the same entity, sounds like you have a new "boss", and this new party is going to be the one you will be dealing with in the future. It's a good idea to require a new contract, with a new term, in exchange for getting involved in changing codes and whatever else he wants. You don't want a dispute or claim down the line and this new person running the business claiming that he never signed and never saw they contract and that he doesn't believe the signature on the contract is authentic or genuine. 
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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