KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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Co- dependent agreements for different services
June 23, 2021
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Co- dependent agreements for different services
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Ken,
We are hoping to sign new agreements with one of our subscribers, for alarm and suppression agreements. We will use the Fire All in One for the alarm and Fire Protection All in One for the suppression systems. There is some shared costs, like quarterly inspection and testing the sprinkler system, flow test the alarm so there will be some shared services. Also, we may not want to continue sprinkler inspection and testing without also having the alarm agreement.
What can language can we include in each agreement that stipulates they are priced to work together:
Where in the agreements should it be included?
Thank you,
Jeff
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Response
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It would not be uncommon to have two separate agreements that depend on the other; one will be effective only if the other is signed and a default of one will constitute a default of both. The language you can use can be several pages or the previous sentence.
I prefer the first sentence above. You would include it in both contracts, probably in the Schedule of Equipment and Services which comes with the All in One agreements.
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two subscribers, one panel equals bad idea
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Ken
We have two subscribers sharing a building and they have separate alarm systems, but share a single panel. One of the subscribers has canceled our service and the other one doesn't want to pay us for a new panel. What should we do?
Name withheld
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Response
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Try to remember to shut the door to the barn before the horses get out. The shared panel was a bad idea and now you know why. While there are circumstances when you do have different subscribers share panels [though more often it's a single subscriber with two different systems sharing a panel]. It's important that you consider all possibilities [and if you're not that lucky, probabilities]. One system has a problem and it affects the other, or as happened here, one subscriber terminates and the other doesn't want to pay for a new panel.
Let's assume the first subscriber, the one with the panel [and so a complete system] came first. Then another building occupant arrives and the two figure out they may as well share the panel and have one monitoring charge. You agree, or worse, it was your idea. The second subscriber's contract should state that there is no panel as part of the system and the system depends on the neighbor's panel. I'd go so far as providing that subscriber was warned to get its own panel but chose to save $xxx but hooking into the neighbor's panel.
The first subscriber, the neighbor, has to agree by the way, in writing, in either that subscriber's contract or the second subscriber's contract, or both [which would be the best course of action if both contracts are getting signed at same time]. As matter of fact you should probably take a moment to read the article above and make the two contracts co-dependent on each other. Had you done that, both contracts would now be in default.
You should have made clear in the second subscriber's contract what happens if the system with the panel isn't working or the other subscriber cancels, which ended up happening.
OK, now you know, but none of the above was done, so now what? We could rely on the contract provision that requires the subscriber to provide power and communication pathways for the system. Weak argument, I know, but might be all you have to work with.
Every subscriber and every system offers multiple possibilities for different scenarios and outcomes. When you are deviating from your custom and practice, and that means making a modification to the Kirschenbaum Contracts ™ you should seek counsel; that would be me. If nothing else you can blame me for the bad advice [assuming you paid for it]. Join the Concierge Program. You will get a free half hour contract review each month. You won't be shy about calling for advice and you will be encouraged to call. Think of it as preventative legal services. Don't think about it too long; join right now: https://www.kirschenbaumesq.com/page/concierge or if still not convinced call our Concierge Program Coordinator Stacy Spector, Esq for more information.
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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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