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Debra, Lawyer
Category: Canada Law
Satisfied Customers: 100468
Experience:  Lawyer
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I just realized that my coverall supplier auto renewed my contract

Customer Question

I just realized that my coverall supplier auto renewed my contract and is charging me a 3 month penalty to now sever the contract. Upon review in the fine print it does say that we should have notified them in writing 3 monthe prior to the anniversary date of our 36 month contract. Do I have an obligation to pay? I have returned all coveralls.
Submitted: 2 years ago.
Category: Canada Law
Expert:  Debra replied 2 years ago.
Did they tell you about this autorenew feature when you signed up?
Customer: replied 2 years ago.
Unfortunately yes I found it buried in my contract
Expert:  Debra replied 2 years ago.
I know you found it in your contract but did they point this out to you when you first signed up?
Customer: replied 2 years ago.
I don't believe they did, all we talked about was shortening the overall contract duration from sixty months to 36. Our company is based in Alberta by the way.
Expert:  Debra replied 2 years ago.
So these autorenewable contracts are generally enforceable. But you cannot be bound by something you didn't know about that was embedded in the fine print especially when you are not a lawyer and when the general terms of the contract were discussed but this apparently was overlooked (likely deliberately.)That would be considered to be an unfair business practice. I suggest that you or even better still a lawyer send them a letter setting out your position and demanding the acknowledge that the contract is over and essentially saying that you are happy to have a court decide but then will be seeking an order for your costs.

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