A home security firm obliged me to sign up for a 3-year contract.

>>"Wasn't this supposed to be a continuation of the contract but at the new place and then you agree for the term to be extended to the 3 years.

Now they are saying you have treat the old contract as an additional term for the new one?"

My answer: Yes, it was supposed to be a continuation, except that, without warning, I was asked to sign a 'new' contract when the intaller came to the new address. That was for 3 years. I signed it. It would end around Dec. 2013.

Now, without ever saying they would, they are demanding that I sign a THIRD contract ending in 2016.

I have amended that 'third contract' to reduce the no. of months, but they are saying they won't accept that.

Debra:

An important question. I happen to be now living in Quebec.

As it happens, Quebec has new consumer laws that outlaw fix-term contracts in the telecommunications field, e.g., for cable and phone companies. The law stipulates that any such contract must clearly state a cancellation fee that is a relatively low percentage of the value of the rest of the contract. I have sent a note to the Quebec Office du consommateur to ask whether this law can apply to a home-security contract.

The 'cancellation' clause on Alarm Force's contract simply says that if, for any reason, the contract is cancelled, the contractee is required to pay out the full value of the remaining months in one lump sum.

In your view, would the presence of consumer protection against long-term fixed contracts in Quebec be a factor in my favor?

Depending upon how the firm responds to my amended contract, I will probably walk away from this service provider.

Debra,

I've looked at all 3 'contracts' I've signed with Alarm Force. None contains an Ontario address, in fact, there is no address for the company anywhere on the contracts.

There is no reference to "Ontario" anywhere on the contracts, and no statement that makes explicit any provincial jurisdiction. Finally, the last version of my 'effective' contracts was signed IN Quebec - although I have not located a single 'office' for the company in Montreal (obviously, they subcontract out their installations). Seems to me that the last real contract I signed with them could be considered a Quebec contract.

Debra, I thought you'd be interested in the outcome of this dispute; also, I would like to explore one more decision with you.

I returned all the equipment to this security firm; I enclosd a letter saying that there was NO valid contract between us. I enclosed 2 months' fees in lieu of 'notice', so a court would see that I was operating in good faith and in conformity with normal practices.
Within 3 weeks, a phone message from one of their managers asked me to 'call me to discuss cancelling your contract'. I did not reply, but was gad to see that the new acknowledged the idea of cancellation. Now I have received a strange document from them. It's essentially an 'invoice for what they call 'cancellation charges', total $50. This, of course, is much better than facing dunning letters for the 'balance of outstanding fees' they would claim, according to the contract, easily close to $1500. What is excellent is that they now formaly acknowledge that the cancellation is legal.

Here's s the interestng twist:
- There is no mention anywhere on my original contracts of anything called a 'cancellation fee', therefore, no agreement to pay one.
- The firm uses two different words to describe its the bill for $50. In two places, it's called a 'Proforma Invoice'; it two other places it's called a 'Performa Invoice' (sic). Perhaps a 'proforma invoice' would be one that is a formality,i.e., already paid or understood not to have any force.

Question: I don't mind paying an extra $50 if it was enhance my claim to not have to pay the remaining $1450. On the other hand, there does not seem to be any legal basis for charging it. What do you think -- ignore it until it's sent 3 times? or pay it?

I've just gone online and found out what a 'proforma' invoice is. Thanks for telling me that their use of the term is wrong.

Your advice seems very good indeed. I will consider sending a letter to this effect. Thanks!

Hi Debra, there is news.

I sent Alarmforce a letter in which I pointed out that their document was not a 'proforma' invoice. In my letter, I requested that they send me a proper commercial invoice. I indicated that, under the terms of any contract I had signed, there was no mention of any 'cancellation fee' therefore, did not know why I'd be bound to pay one. However, I indicated that I was prepared to remit their $50 cancellation fee, as long as the following paragraph appeared in their invoice (and that they had to sign it):

“In consideration of the payment to Alarmforce by Walter Bruno of the sum of fifty dollars, Alarmforce hereby agrees to close account 244020; agrees that Alarmforce has no further claim against Walter Bruno for or related to account 244020; and releases Walter Bruno from any and all actions, causes of actions, damages, suits, debts, dues, accounts, bonds, covenants, contracts, claims, and demands, made either by itself or by any party to which account 244020 may be assigned in the future.”

Today, I have received a voicemail message (which I have Saved). In the message, the speaker says that she confirms that the "fifty dollars is a cancellation fee and that, after you remit it, your account will be considered closed." However, she says that they "cannot" send any re-worded version of the 'proforma' invoice. If I don't remit the $50, she says, "the account will still be considered open." She adds that if I request a letter confirming the above, they will send it out.

What do you think? I suppose, at worst, my risk is to have paid yet another $50 to them, while my potential gain is to have, in fact, gotten out of the contract. In my own opinion, it will be hard for them to claim that the intention of this offer was not to cancel the contract.

I would appreciate your thoughts.

Roger wilko. Am still upset that they won't confirm 'no futher sums owing'. However, am confident that their long-term contract was illegal in the first place.

Debra,

The letter from AlarmForce officially cancelling my account has been received. Victory!

Thanks a very great deal for your advice and support.