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MShore Law
MShore Law, Attorney
Category: Business Law
Satisfied Customers: 25285
Experience:  Drafted Negotiated and/or Reviewed Thousands of Commercial Agreements
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My wife signed a home based daycare contract in NJ without

Customer Question

My wife signed a home based daycare contract in NJ without reading it fully. One of the provisions was "2 month notice period" for terminating the service. We went on one month vacation to India in June and before going on vacation, my wife explicitly told her that we will terminate the service and re-admit (if necessary) after coming back because we had a plan of keeping our daughter for few more months with her grandparents in India. My wife told her that she would not pay for the period that we will be India for which she agreed to. After coming back from India, we told her that we will terminate her service and admit our daughter to a professional day care and she agreed to it with no issues. A couple of days later she sent an email asking for recommendation letter which my wife responded promptly. A week after that, she sent a mail stating that we need to pay 1 month fee ($800) since we didn’t give the 2 month notice. She never gave us the signed contract but feel this is unfair because
(1) She should have told us about the 2 month notice before going to India when my wife told that we will terminate and re-admit (if necessary) after coming back OR
(2) When my wife spoke to her about our decision to change day care after we came back.
(3) 2 Month notice seems too much for day care where as the norm appears to be 2 weeks
(4) My wife was misled into signing the contract because the lady said that is needed for her documentation purposes since she is planning on expanding her day care to a registered one.
(5) Contract does not mention anything about what the consequences are if the 2 month notice period is not met

Please help.
Submitted: 5 years ago.
Category: Business Law
Expert:  MShore Law replied 5 years ago.
Thank you for the post, I am happy to assist you by answering your questions. While the contract is enforceable against your wife, and the day care provider able to enforce its terms in a small claims suit (in which the provider would likely prevail), you should consider offering a sum in compromise explaining that the effort and expense the provider would have to dedicate to a small claims action would not be worthwhile and it would be est for all to amicable resolve the dispute with a settlement. Please let me know if you need additional guidance or have any follow up questions.
Customer: replied 5 years ago.
Thanks for your response. She never gave us any receipts for the service we had too and it is not a registered day care. Would the contract be enforceable even if she does not give us the receipts.
Expert:  MShore Law replied 5 years ago.
The contract is unenforceable if the daycare does not have the proper licensing. You mentioned that it is not registered, by this do you mean it is not authorized by the county or state?
Customer: replied 5 years ago.
Yes, it is not authorized by the county or state. It is a home based day care and she told us that she was trying to get it registered and hence needed the document signed by my wife. There was another part-time kid along with our daughter in the day care.

We called up our county (middlesex) child care agency and they confirmed the same i.e. it is not registered.

Expert:  MShore Law replied 5 years ago.
Thank you, then she cannot enforce a contract based on the operations of the unlawful entity.
Customer: replied 5 years ago.
Thank you. If she goes to a small claims court, what are our options. So far, we don't have any proof of day care with her (because she dint give any receipts) except the email communication we had since the dispute.
Expert:  MShore Law replied 5 years ago.
If she goes to small claims court you would file a motion for summary judgment claiming the contract is void as the entity whom entered into the contract is not recognized.