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RGMacEsq, Attorney
Category: Business Law
Satisfied Customers: 16850
Experience:  Licensed Texas General Practice Attorney
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Is it legal to have an auto renewal contract in california

Customer Question

Is it legal to have an auto renewal contract in california?
Submitted: 8 years ago.
Category: Business Law
Expert:  RGMacEsq replied 8 years ago.
Do you mean auto as in automobile or automatic? What type of contract is it?
Customer: replied 8 years ago.
Expert:  RGMacEsq replied 8 years ago.

That's what I figured. I just wanted to be sure.


They are legal and enforceable, so long as the clause itself is printed in at least 8 point bold faced font, the drafter of the contract is not deceptive or misleading in the terms of the clause (has to be clear english, essentially).


Could you give me a little bit more information regarding the case? What is the contract pertaining to?

RGMacEsq and 4 other Business Law Specialists are ready to help you
Customer: replied 8 years ago.
I have two contracts. One is rental and cleaning of uniforms, it has a three year auto renewal. The other is a contract for internet services with a one year auto renewal. Are you sure this is legal in California, I have heard in the past that auto renewal is not enforceable in California.
Expert:  RGMacEsq replied 8 years ago.

Well, the provision that I cited is for lease of real property. In terms of other types of contracts, such as service contracts, these are not addressed or prohibited in statutes. They have tried to outlaw them by statute, but have failed (which means that they are still around). Also, these are typically upheld in B2B situations (what this sounds like) because of the greater savvy and understanding of typical business people.


That being said, the terms of the renewal might be unconscionable and you might be able to get the contract voided as a result, but you would have to go to court for this.


I'm sorry I could not help you further here. Good luck!