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Debra, Lawyer
Category: Canada Law
Satisfied Customers: 100990
Experience:  Lawyer
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In Alberta, we have a contract with a garbage company to

Customer Question

in Alberta, we have a contract with a garbage company to provide our business with bins and removal, this contract has just rolled over for a third time and we have found out that we are being charge about $800/month more than the going rate for the service. Is there a law regarding roll over contracts and how many times they can roll over, I would like to cancel but they are threating to take legal action if I do
Submitted: 1 year ago.
Category: Canada Law
Expert:  Debra replied 1 year ago.

I am sorry to hear of this difficult situation.

Are you saying this is an auto-renewable contact and if so did you know this?

And does the contract say that it continually auto-renews unless you end it?

Did they raise the price this year?

Customer: replied 1 year ago.
it is an auto renew, I can only assume that the guy who signed knew this, they raise the price every year
Expert:  Debra replied 1 year ago.

Who signed it?

And does the contract allow for raising the price each time before it renews?

And if so don't they have to tell you the price?

Customer: replied 1 year ago.
Signed by the owner of the companyThe contract allows for increases in price to allow for increases in their costs, fuel, dump fees etc. and also for consumer price index increases
Customer: replied 1 year ago.
They have offered to come down to just under $400.00 if we sign a new contract but the going rate here is $65 to $95
Customer: replied 1 year ago.
I read somewhere that they can only legally roll me over once and they have to provide 1 month notice of roll over, not sure if that is for business to business or just consumers to business though
Expert:  Debra replied 1 year ago.

I have just spent a lot of time trying to find what you read and I don't see that as being the law in Alberta. It is in some other provinces.

I could be missing something but I cannot find it in the Fair Trading Act or anywhere actually.

From what I have found this is about basic contact law and if both parties signed knowing what they signed then the contract would be binding.

The Consumer Protection Branch will not help you because you are a business but you can call them and ask them if there is a law about auto renewable contracts and if so whether it does apply to businesses in case I have missed it.

Here is a link to their contact information:

I hope that helps.

Please feel free to post back with any follow-up questions you may have. If you don't have any then I hope I have earned a 5 star rating but if you don't feel that I have please don't hesitate to reply back and let me know what more I can do to assist you. Finally, please know that even after you rate me I will be here for you and you can ask follow-up questions if you think of them later on at no further charge of course.

Expert:  Debra replied 1 year ago.

Is there anything more I can help you with at this point in time?