KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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Changing the Service Plan option
October 28 2022
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Changing the Service Plan option
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Ken
          When a customer signs up for our service agreement but then before we finish install or shortly after they change their mind and want to remove it. We are okay with this, but wondering what we need from the client legally.
          Does a recorded email suffice?  Do we have to send a new contract? We are hoping to make it easy on the customer and not send a new contract.
Ryan
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Response
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          The service agreement is part of the All in One and there are two options, per call or service plan.  A customer would have no reason not to sign the per call option, or to ask to cancel that per call agreement, because the per call is completely optional on the part of the customer; the customer must call you for service.  What may be less obvious to the customer, or you, is that the option works both ways, you don't have to perform any service under the per call arrangement.  For one thing, before you can perform under a per call service both you and the customer will need to have an understanding what it's likely to cost; maybe a fixed cost.  Also, you are entitled to be paid at the service call.
  So I have to guess this customer signed on for a Service Plan with RMR obligations, and now wants to cancel.  You haven't done any repair service under the plan so you don't mind.  Also, presumably, you weren't counting on the Service Plan RMR when you decided to do the job.  
  You need to document that the All in One is modified by changing the Service Plan to the per call option.  If the customer won't agree to the per call option you can continue to monitor [if that box is checked] and inspect [if that box is checked] but you won't be able to perform any service call.  
  You can send the customer a simple "agreement" modifying the All in One or accomplish the change with back and forth emails, that you retain with the contract.  Though formal execution of a new All in One is not necessary that is also an option.
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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