KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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Subscriber’s buyer wants it's contract form signed 
September 22, 2021
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Subscriber’s buyer wants it contract form signed
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Ken
          We have a subscriber with many locations in New Jersey that recently sold out to a giant. They have enlisted the services of a management company who is sending me a contract that is so complicated and it looks like they are trying to push my previous Fire All in Ones to the trash. Your thoughts?
Name withheld
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Response
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          A thorough response would require additional information, such as:
  *  Is the Fire All in One sale or lease
  *  how much time is left on the Fire All in One.   When K&K sent it to you the contract it came with a 10 year term. 
  *  have you continued to provide services after the sale
  *  did the buyer make any payment to you
  *  did the buyer assume the liability of the Fire All in One
          You already have a contract to provide your services and someone, either the original subscriber or the buyer, or both, are responsible to continue the contract; you don’t have to toss it aside or modify it if you don’t want to.  The buyer may have assumed the obligation under the contracts in which event you can hold both the original subscriber and the buyer to the contract.   If the buyer has knowingly accepted your services, perhaps paying for the service, it may very well have assumed the contract, even if its contract with the original subscriber excludes assumption of liabilities. 
          Because your services are “after-install” services you do need the protection of the Fire All in One.  While we can relax some of the contractual protection for the install phase you have to be very careful about contractual protection for the after-install services.  This is especially so if you subcontract some of those services, such as monitoring, because your central station and other subcontractors, as well as your E&O insurance company, depend on your contract for their protection.
          Of course you can entertain a new contract, especially if your contract term is expired or about to expire [unless you have a Lease and can remove or sell the equipment to the subscriber in which event you may want to pursue that option].  You may want to engage K&K to assist with the negotiations, which should start with your Fire All in One.  The Concierge Program is designed to deal with this very situation.
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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