Legal Question in Business Law in California

Automatic renewal

I have a contract with an automatic renewal clause. They have actually put the clause for the automatic renewal into the Terms part of the contract instead of making it a separate clause. There is no bold type or larger font. Does this make it non enforcable? I notified them of a cancellation 3 days prior to the end of the contract instead of 30 days, therefore they are trying to push one more year of service on us. Please let me know what I can do.


Asked on 6/25/02, 7:43 pm

1 Answer from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Automatic renewal

What is the subject matter of the contract? Civil Code section 1945.5 requires boldface and a notice near the signature line in a preprinted lease for residential property. There may be such requirements in some other specific types of contracts, but it is not a general requirement of contract law and many business contracts are self-renewing without any special large-type or clause location requirement. An example that comes readily to mind is a consumer's contract with the telephone company for basic (dial tone) service.

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Answered on 6/25/02, 8:31 pm


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