Contract Obligation

[Andy]

I use a home security system. Our account has been sold many times. We thought we had been sold off again, but the old company says they never did this. They now want a years worth of back payments! They say the contract states that if they did not hear from within 30 days after our contract should have been up, then it automatically renewed for another 1 year contract. Is this a legally binding contract? Are we liable for a whole year even though we did not even know that policy was in the contract (they have yet to send us a copy of the contract)? I would be interested in any educated replies. Thank you,

Andy

 

[Tracey]

Why don't you have a copy of the contract? If it says you renew by failing to cancel, you're stuck (unless some state law bars such provisions).

Start keeping a file of all correspondence. Make sure you send them a demand for a copy of the contract you signed. The company willhave a hard time suing for the costs of enforcing the contract if they wouldn't even give you a copy!

Does the contract allow for arbitrary sale of service and does the renewal clause survive such a sale?

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This is not legal advice and you are not my client. Double check everything with your own attorney and your state's laws.

 

[Andy]

I do not know if it makes a difference, but the state that I live in is Arizona.