Automatic contract renewal

[eschuler]

I cancelled an unemployment advisor because his services were no longer needed. He is suing the company for breach of contract. He has a contract that was signed by an employee back in 1997 and is to be AUTOMATICLY renewed annually unless we notify him. The employee who signed the contract has not been with the company for well over a year. We didn't even have a copy of the contract on file until he mailed it to me. We also never received any renewal agreements or notices. Are we legally bound by this contract that we had no reasonable knowledge of?

 

[HomeGuru]

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by eschuler:
I cancelled an unemployment advisor because his services were no longer needed. He is suing the company for breach of contract. He has a contract that was signed by an employee back in 1997 and is to be AUTOMATICLY renewed annually unless we notify him. The employee who signed the contract has not been with the company for well over a year. We didn't even have a copy of the contract on file until he mailed it to me. We also never received any renewal agreements or notices. Are we legally bound by this contract that we had no reasonable knowledge of? <HR></BLOCKQUOTE>

Read the contract with respect to terms and conditions of cancellation. Then cancel the contract the correct way and put him on umemployment. Of course use an attorney to help you.

 

[eschuler]

Thanks for the message. Contract says to notify him 30 days before annual renewal. He still wants us to pay him for future services uptil 12/31/00. Only $700 involved so it's more a matter of principle. An attorney would usually charge more then that.

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by HomeGuru:
Read the contract with respect to terms and conditions of cancellation. Then cancel the contract the correct way and put him on umemployment. Of course use an attorney to help you.<HR></BLOCKQUOTE>