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Panel dies right before auto-renewal
January 26, 2022
Panel dies right before auto-renewal
            I have a customer that is within 30 days of their contract being completed.  This is a contract that I had prior to using Kirschenbaum Contracts and it’s in the state of Kentucky which does not have an auto renew law.  The contract auto renews for 36 months at the completion of a 60 month term.
            The problem is their panel died today they did not execute a cancellation prior to the 60 day cancellation period.  Based on the way the contract reads they on the hook for another 36 month term.  What are your thoughts on it?
            Customer does not want to pay to replace the panel. They will not accept a free panel for a new contract and the customer does not want to pay for services they are not receiving.
            Because you are not using a Standard Form Agreement I don't know what you agreed to.  Specifically I don't know if you agreed to replace non-operational equipment during the contract period.  You indicate that the contract has self-renewed, though apparently the customer doesn't want to pay to fix the panel and doesn't want to pay for monitoring since the system is down.
            It could be that the customer is happy to let you disappear, which might be a good thing since this customer won't sign a proper up to date Residential All in One. We can hope for this outcome.
            Alternatively your customer could read the contract you signed, way back then, and figure out that you agreed to replace necessary parts and keep the system operational [if that's what it says].  Then the customer could let you know that they didn't cancel and neither did you, so you have to fix the system and continue monitoring.  If you don't they may hire someone else to fix it and monitor the system and look to you to pay for the repair and the difference between what they would be paying you and what they are now paying their new alarm company.  Though not a likely scenario, you asked.
            One advantage of using the Standard Form Agreements is that I'll know what you agreed to and can offer quick advice as issues arise.  This especially applies to you because you're a Concierge Client. For others, I recommend using the Standard Form Agreements and joining the Concierge Program [before we have to create a waiting list to get into the program - and we are getting close to that]. 
            The second advantage to using the Standard Form Agreements is that K&K can represent you if you have a dispute because the contracts have an arbitration provision. 
            The third advantage to the Standard Form Agreements is that you're not likely to be between a rock and hard place because we've considered almost all scenarios and protected you.  For example, in your case there would be no doubt that the customer had the obligation to repair or replace the panel, and have to continue with the contract into the renewal term [though the renewal term would likely be month to month, which is what we recommend in all states, including those with no automatic renewal law currently on the books].    

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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