KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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terminating customer / watch for altered contracts 
March 26,  2022
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terminating customer
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Ken,
       We have a customer that wants to terminate her contract early. We had a few issues with her front door lock batteries; her husband replaced them, but they still weren't working.  I would like your legal advice and steps from here on out on this matter for this customer and all future customers we may have this issue with. If you have any questions, please feel free to call. Thanks
name withheld
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Response
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     Early termination is a breach of the contract and you have all of the remedies that are within the Legal Paragraph. Generally that means 100% of what's owed to date, 80% of balance of contract and sometimes 80% of the value of equipment, plus legal fees.
      You can terminate your customer only if the customer has breached the contract; otherwise you will be in breach.  Of course mutual consent works.
     Whether you decide to pursue your breaching customers is your decision; it certainly entails devoting some time to the collection process, though K&K collection staff really does the heavy lifting.
     You should be a member of the Concierge Program. You get free half hour contract review each month, free collection letter each month, 10% off contract price and 10% off hourly billing from K&K. The Concierge Program makes you a priority client of K&K [though all alarm clients are collectively priority]. Join the Concierge Program today and start using it.
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watch for altered contracts from article on February 24, 2022
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Ken,
     Two FYI’s; it is very easy to edit a PDF file. Also Word has a document compare feature which would allow a returned contract to be electronically and easily compared to the original.
Just information, I don’t disagree with your positions and advice.
Chris
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Response
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     As tedious as it is you have to be careful that the form contract you send out gets signed without changes to the printed form; sort of disguised changes. Word docs are of course easy to modify unless they are edit proof. PDF documents can now be changed using Adobe.
It's a good practice to send your contracts out with your signature on it. As long as you haven't gotten it back you can withdraw the contract. Sending a signed contract out is really making an offer and until it is accepted you can withdraw it. While you won't be held to changes surreptitiously made to your printed form it could end up being an expensive battle and lesson. Read what you sign and what you get back from your customer.
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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