Legal Question in Business Law in California

We have a security system at our office that apparently the contract rolls over with out notification by the security alarm company. When we decided to cancel we were told our contract is not up yet and there would be a cancelation penalty. Is this legal?


Asked on 5/18/11, 12:01 pm

3 Answers from Attorneys
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Read The Friendly Contract. The way to deal with "evergreen" clauses is to cancel as soon as you sign (if you choose to sign). Make sure you cancel in the manner specified in the contract.

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Answered on 5/18/11, 12:23 pm
Terry A. Nelson Nelson & Lawless

Your contract determines the rules.

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Answered on 5/18/11, 1:44 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

In some consumer contracts, automatic renewal clauses are required to be prominently printed and placed. In an alarm-service contract for a commercial client, I am pretty sure there are no particular requirements governing these so-called evergreen (self-renewal) clauses.

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Answered on 5/18/11, 6:57 pm


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