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Law Pro
Law Pro, Attorney
Category: Business Law
Satisfied Customers: 22776
Experience:  20 years experience in business law - sole proprietor, partnership, and corporations
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I HAVE A ALARM CONTRACT FOR MY BUSINESS. I MOVED THE BUSINESS

Resolved Question:

I HAVE A ALARM CONTRACT FOR MY BUSINESS. I MOVED THE BUSINESS AND A COUPLE OF
MONTHS AGO AND VERBERLY CANCELLED MY CONTRACT WITH THE COMPANY. NOW 3 MONTHS LATER THEY WANT ME TO PAY FOR A RENEWEL OF THE CONTRACT AND THE EQUIPMENT I USED FOR 20 YEARS. I LOOKED AT THE CONTRACT AND IT HAD A OPTION OF 5 5 YEARS OR YEAR TO YEAR RENEWAL. THE 5 YEAR OPTION HAS A LINE THROUGH IT WITHOUT MY INITAILS, SO IS THIS LEGAL?
Submitted: 2 years ago.
Category: Business Law
Expert:  Law Pro replied 2 years ago.
The "strike-out" without your initials wouldn't be valid.

However, since you are a business - no consumer protection laws would apply to you. That means that the contract stands as written.

So you just have to look and see how you were suppose to give them notice of your cancellation of the contract. If you didn't or don't follow that - the contract continues unless it states otherwise or ends after a certain time.



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Customer: replied 2 years ago.

THE CONTRACT STATES A WRITTEN 60 DAY NOTICE. I GAVE THEM A 30 DAY VERBAL TO THE SALESMAN OF ALARM CO. TO CANCEL MY SERVICE. I WAS IN

NEGOTIOANS WITH THIS CO. TO MOVE MY SYSTEM. THE SALESMAN TOLD ME TO LEAVE IT BECAUSE IT WAS 20 YEARS OLD AND WOULD COST MORE TO MOVE IT AND IT HAD NO VALUE. NOW THEY WANT ME TO PAY FOR THE EQUIPMENT. DO I STILL NEED TO PAY FOR THIS? AND IS THERE ANY LOOPHOLES OR OTHER WAYS OUT OF THIS?

Expert:  Law Pro replied 2 years ago.
You have to comply with the terms of the contract - a verbal notice did not comply with the terms of the contract.

However, as to the cost of the equipment - you did what the salesman told you to do. The salesman has the implied apparent authority to tell you want to do. As such, the salesman bound the alarm company to their statements.


The law of agency is an area of commercial law dealing with a contractual or quasi-contractual, or non-contractual set of relationships when a person, called the agent, is authorized to act on behalf of another (called the principal) to create a legal relationship with a third party.[1] Succinctly, it may be referred to as the relationship between a principal and an agent whereby the principal, expressly or impliedly, authorizes the agent to work under his control and on his behalf. The agent is, thus, required to negotiate on behalf of the principal or bring him and third parties into contractual relationship. This branch of law separates and regulates the relationships between:

Agents and principals;
Agents and the third parties with whom they deal on their principals' behalf; and
Principals and the third parties when the agents purport to deal on their behalf.

The common law principle in operation is usually represented in the Latin phrase, qui facit per alium, facit per se, i.e. the one who acts through another, acts in his or her own interests and it is a parallel concept to vicarious liability and strict liability in which one person is held liable in criminal law or tort for the acts or omissions of another.

An agent who acts within the scope of authority conferred by his or her principal binds the principal in the obligations he or she creates against third parties. There are essentially three kinds of authority recognized in the law: actual authority (whether express or implied), apparent authority, and ratified authority.

Actual authority
Main article: Actual authority

Actual authority can be of two kinds. Either the principal may have expressly conferred authority on the agent, or authority may be implied. Authority arises by consensual agreement, and whether it exists is a question of fact. An agent, as a general rule, is only entitled to indemnity from the principal if he or she has acted within the scope of her actual authority, and may be in breach of contract, and liable to a third party for breach of the implied warranty of authority. In tort, a claimant may not recover from the principal unless the agent is acting within the scope of employment.

Express actual authority

Express actual authority means an agent has been expressly told he or she may act on behalf of a principal.

Ireland v Livingstone (1872) LR 5 HL 395

Implied actual authority

Implied actual authority, also called "usual authority", is authority an agent has by virtue of being reasonably necessary to carry out his express authority. As such, it can be inferred by virtue of a position held by an agent. For example, partners have authority to bind the other partners in the firm, their liability being joint and several, and in a corporation, all executives and senior employees with decision-making authority by virtue of their position have authority to bind the corporation.

Hely-Hutchinson v Brayhead Ltd [1968] 1 QB 549

[edit] Apparent authority
Main articles: Apparent authority and Estoppel

Apparent authority (also called "ostensible authority") exists where the principal's words or conduct would lead a reasonable person in the third party's position to believe that the agent was authorized to act, even if the principal and the purported agent had never discussed such a relationship. For example, where one person appoints a person to a position which carries with it agency-like powers, those who know of the appointment are entitled to assume that there is apparent authority to do the things ordinarily entrusted to one occupying such a position. If a principal creates the impression that an agent is authorized but there is no actual authority, third parties are protected so long as they have acted reasonably. This is sometimes termed "agency by estoppel" or the "doctrine of holding out", where the principal will be estopped from denying the grant of authority if third parties have changed their positions to their detriment in reliance on the representations made.[3]

Rama Corporation Ltd v Proved Tin and General Investments Ltd [1952] 2 QB 147, Slade J, "Ostensible or apparent authority... is merely a form of estoppel, indeed, it has been termed agency by estoppel and you cannot call in aid an estoppel unless you have three ingredients: (i) a representation, (ii) reliance on the representation, and (iii) an alteration of your position resulting from such reliance."
Freeman & Lockyer v Buckhurst Park Properties (Mangal) Ltd [1964] 2 QB 480
The Raffaella or Egyptian International Foreign Trade Co v Soplex Wholesale Supplies Ltd and PS Refson & Co Ltd [1985] 2 Lloyd's Rep 36.


BotXXXXX XXXXXne is - you don't owe the alarm company for the equipment.



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Customer: replied 2 years ago.

Wow, thats alot of info. Any way out of the automatic renewal. I was with this Co. for

20 years. Or am I stuck with that?

Expert:  Law Pro replied 2 years ago.
Sorry for "too" much info - just wanted you to be sure of the law.

Stuck with that I'm sorry to say. You have to give them notice pursuant to the contract to terminate their service.



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Law Pro, Attorney
Category: Business Law
Satisfied Customers: 22776
Experience: 20 years experience in business law - sole proprietor, partnership, and corporations
Law Pro and 7 other Business Law Specialists are ready to help you
Customer: replied 2 years ago.

Thanks for your help

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