Home Alarm Early Contract Termination

[Michael75]

If only the length of the contract is written into the terms and conditions but no early termination penalty is stated in the terms and conditions, is the consumer still legally bound to pay an early termination fee?

The state is WA and the only written statement in the terms and conditions pertaining to the contract length terms and termination is the below statement.

"If this agreement is a recurring service transaction, then this Agreement shall begin on the later of the date of completion of installation or the date of commencement of services rendered, and shall continue for a period of five years after the first day of the month next following said date. This Agreement shall renew automatically for successive periods of year to year thereafter unless either party gives the other party written notice of termination."

 

[OHRoadwarrior]

We would need to see the contract and initial paperwork to know for sure.

 

[FlyingRon]

We'd also need to know what state it is.

 

[justalayman]

As a general answer though;

If there were no provisions for an early termination of the contract they simply are not required to allow an early termination of the contract. If they are willing to accept some sort of fee to terminate the contract early it is generally within their rights to do so.

 

[Michael75]

We would need to see the contract and initial paperwork to know for sure.

The state is WA and the only written statement in the terms and conditions pertaining to the contract length terms and termination is the below statement.

"If this agreement is a recurring service transaction, then this Agreement shall begin on the later of the date of completion of installation or the date of commencement of services rendered, and shall continue for a period of five years after the first day of the month next following said date. This Agreement shall renew automatically for successive periods of year to year thereafter unless either party gives the other party written notice of termination."

 

[FlyingRon]

On its face you're on the hook for five years of service. They could presumably require you to keep paying. What are they actually asking and how much do you have to go on the contract?

You do understand that your alarm installation was subsidized by the future monitoring plan expectations (that's why there is a contract there to begin with).

 

[justalayman]

So the initial period is 5 years and then renews annually unless you give written notice of your intention to not renew at the next period


If this is like many of the security systems I have seen the lengthy initial period is due to the fact the hardware is installed for "free" or a highly discounted rate. The 5 years allows then to recoup their expenditures.


So, if you want to terminate the contract prior to the 5 years it wouid not be unusual for them to either say no or demand some amount of money that at least allows then to recoup their costs.


Your alternative is simply live through the duration of the contract. If they have tossed out a number that would cause them to terminate the contract early, then that's pretty much where you are.

 

[Michael75]

So the initial period is 5 years and then renews annually unless you give written notice of your intention to not renew at the next period


If this is like many of the security systems I have seen the lengthy initial period is due to the fact the hardware is installed for "free" or a highly discounted rate. The 5 years allows then to recoup their expenditures.


So, if you want to terminate the contract prior to the 5 years it wouid not be unusual for them to either say no or demand some amount of money that at least allows then to recoup their costs.


Your alternative is simply live through the duration of the contract. If they have tossed out a number that would cause them to terminate the contract early, then that's pretty much where you are.

I'm 2+ years into the 5 year contract. When I signed up with the sales rep, it was verbally stated that after 2 years, I could cancel without penalty. It was naïve of me not to have the statement written down. Another fact is the company that I originally signed up with has been bought out by another local alarm company. I'm hoping that favors me in getting out of the contract?

 

[Zigner]

I'm 2+ years into the 5 year contract. When I signed up with the sales rep, it was verbally stated that after 2 years, I could cancel without penalty. It was naïve of me not to have the statement written down. Another fact is the company that I originally signed up with has been bought out by another local alarm company. I'm hoping that favors me in getting out of the contract?

Not likely.

 

[justalayman]

i suspect nobody remembers a thing about this 2 year deal. That means the terms of the written contract will rule.



As to another company buying out the original one; as long as they perform as the contract calls for it is irrelevant.

 

[Michael75]

i suspect nobody remembers a thing about this 2 year deal. That means the terms of the written contract will rule.



As to another company buying out the original one; as long as they perform as the contract calls for it is irrelevant.

Even though it sounds like I will not be able to get out of the contract without penalty, thank you Justalayman and everyone else that has provided advise on my situation.