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LegalGems
LegalGems, Lawyer
Category: Consumer Protection Law
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I dont have anymore detail. Extended contract with security

Resolved Question:

I don't have anymore detail. Extended contract with security company in Texas for residence in 12/12. Have since sold home. Contract was verbal over phone and they mailed a contract back to us verifying what was said. Extended contract is for 4 years. We sold home in late June 2013 and security company wants to bill me for the 4 years. New owners have security with another company.
Submitted: 1 year ago.
Category: Consumer Protection Law
Expert:  LegalGems replied 1 year ago.

Customer:

Hi!Customerhere. My goal: To Do My Best To Assist You. Please remember, I can only provide general information,as this is a public forum.

Customer :

thank you.

Customer:

I'm sorry to hear of this situation and will do my best to give you the information you need. Did the contract that was mailed state the terms of the contract - i.e. the length of service? If so, was it conspicuously stated? Also, was there any provision regarding what would happen upon the sale of the home?

Customer:

While I wait for an answer to that, I'll begin researching this for you.

Customer :

The contract states it clearly but I don't remember if it states what to do if we move. We are both in our 70s and have moved to a retirement residence and now rent. I don't have the written contract here, but can review that later.

Customer:

OK; a few moments please.

Customer :

I just spoke with someone there in customer service. He said my only option is to pay for the next 4 years or have new owner take it over

Customer:

That unfortunately may be true. If there is no cancellation provision (i.e. like a cancellation penalty) and it is considered a breach, the other side would generally be entitled to the full benefit of the contract - i.e. monthly payments for four years. I am trying to see if I can find any relevant loopholes so that this standard rule would not apply.

Customer :

New owner is to have their security system installed today and also signed a contract with their company. They will call their company and see if they can cancel

Customer:

That is very considerate of them! A few minutes more please as I'm downloading some information.

Customer:

Unfortunately, unless there is a provision in the contract, there is no external loophole for cancellation. Many contracts will allow cancellation if the party moves outside the service area; others permit a cancellation fee, which would presumably be cheaper than paying for the next 3.5 years. You should review the contract and see if there are any such provisions. If you do end up liable for the 3.5 years, if you offer a lump sum payment, they may negotiate on the outstanding amount.

Customer :

thank you

Customer :

thank you. I will write this info down. I appreciate your service. joanne

Customer:

You are welcome. I wish I had better news for you! Hopefully the new owners will be able to cancel their contract and assume yours. Here's some information on a consumer's 3 day right to rescind a contract: https://www.oag.state.tx.us/agency/weeklyag/weekly_columns_view.php?id=183 - it may come in handy if the new owners signed their contract within the past few days.

Customer:

You can actually cut and paste it into a word document; or make a note of the URL in the internet bar and that will bring you back here.

Customer :

thank you. nice to have a quick overview of options. goodbye

Customer:

What was the name of the company?

LegalGems, Lawyer
Satisfied Customers: 3731
Experience: Research Attorney; Private Practice; Attorney Mentor; Mediator
LegalGems and 2 other Consumer Protection Law Specialists are ready to help you
Expert:  LegalGems replied 1 year ago.
I wanted to be sure and thank you for using JA/Pearl.

I hope you found the information I provided useful.

If you would like to request me for your future legal inquires, please put TO LEGAL GEMS in front of the question, and I will do my best!

In the meantime, if you have the name of the company, I can try and locate their cancellation policy on line if you are having difficulty locating the contract.
Take care.
Customer: replied 1 year ago.


I have just obtained the copy of original contract which was then from APX Alarm. Vivint is their new name. It was made for 5 years and signed on May 24, 2007. In small print of the copy I have. Nothing is there r: if we move or resell house. On the front of the agreement is written under


Term for Services states: "The original term of this agreement starts on the day this agreement is signed and continues for sixty (60)months, and will automatically continue from year to year thereafter unless cancelled by either of us in writing no later than thirty(30) days before the end of the original term or any renewal term."


A letter was mailed to us ll/7/2012 confirming in writing the details of our phone conversation with a Vivent rep. that Vivint would not increase monthly fees and would extend the term of Agreement 42 months. beginning 11/7/2012, and monthly services fee will remain the same. All other terms, provisions, covenents and conditions shall remain in force, except as expressly modified by our agreement set forth herein.


I have read on line I could possibly call them and speak with a supervisor and possibly get a reduced fee for buyout, but still don't see anything in contract unless it is just understood that I have to pay if I move. Nothing was signed by me. The extension was verbal.


Please help me understand this.

Customer: replied 1 year ago.

because I did not have all the info at
the beginning to clarify my question. After obtaining my documents, I sent a
reply stating information as specified in the document. Did not know if I could
continue the conversation 5 days later and hope someone will be there Monday to
read and reply.

Expert:  LegalGems replied 1 year ago.

I am sorry for the delay. I just received notification of your post.

That letter would serve as an extension (addendum) to the contract; Since they extended the contract with your permission for an additional 4 years, then cancellation would unfortunately result in a breach. (The original contract provisions all apply, based on the letter's revisions). Even though moving isn't specifically addressed, since the contract was renewed for 4 years, the homeowner would be liable under the contract for the full term. Once the term is up, the contract states how cancellation may be effected.

You may want to see if you can negotiate a pay-off amount, if the new owner is unable to assume the contract.

Let me know if I didn't understand the question,but I believe the above is what your concern was.

Customer: replied 1 year ago.


Thank you. I was afraid of that. Doesn't seem fair. jm

Expert:  LegalGems replied 1 year ago.
You are welcome.

The unfortunate thing with these types of contracts is that we generally don't read them because if we read each contract we signed for daily services, a large portion of our life would be spent reading legal documents. So I think the companies for service contracts/phones rely on this, as the average consumer is just going to check the monthly cost, and move on from there.

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