Legal Question in Business Law in California

Business Contracts Law

Auto repair shop had 3 yr contract with uniform company. Cancelled service after 3 1/2 yr and got bill by uniform company lawyer for 3 years service. Uniform company lawyer contends that contract had 5 yr authomatic renewal and we needed to submit cancelation in writing at end of 3rd year and discuss cancellation with uniform company. Otherwise our shop is liable for 3 yrs charge. Can this be true.


Asked on 7/31/07, 12:25 am

4 Answers from Attorneys
Matthew Mickelson Law Offices of Matthew C. Mickelson

Re: Business Contracts Law

It depends on what the contract says; is there such a provision in it? You may want to talk to a lawyer about your rights and liabilities in this situation.

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Answered on 7/31/07, 12:47 pm
Terry A. Nelson Nelson & Lawless

Re: Business Contracts Law

Get an attorney to respond and tell them to take a hike. The courts would not likely enforce such penalty and contract. They are trying to scare you into paying. Feel free to contact me if interested in doing so.

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Answered on 7/31/07, 1:39 pm
Gregg Gittler GITTLER & BRADFORD

Re: Business Contracts Law

The first step is to have a lawyer read the contract. However, even if the contract has such a clause in it, it seems to be "unconscionable" (too one-sided to be enforced), and would be thrown out by the court.

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Answered on 7/31/07, 8:28 pm
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Re: Business Contracts Law

Read The Friendly Contract. I doubt a judge would uphold a 3 year penalty. Consider countersuing.

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Answered on 7/31/07, 1:32 am


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