Legal Question in Business Law in California
Gym Membership Contract
Hello,
We own a women's only gym. Our contract states, "This 12-month agreement shall continue until member cancels. Cancellation requires a written 30-day notice." Our member who rarely used the gym has just contacted us and is demanding a refund because she states that she just found out that we are still drafting her after 4 years of time. We offer a "service", we can not require that our members "show up" and workout. Nor do we look at every single member file to see if they have been in to workout. We clearly look at folders for a "reason". She also stated that she thinks she had cancelled about 15 months into the membership and then forgot about it. When do people take responsibility for not calling the bank and asking "What is the $ coming out of my account for?" Thank you for your help.
3 Answers from Attorneys
You gotta be kidding. You are still billing this person after four years? She could well have a lawsuit against you under the fair debt collection laws. Your problem is that you didn't have a lawyer draft your standard contract (otherwise you would be asking the lawyer instead of a website). I can think of some gym-contract provisions that are less overreaching and more likely to hold up in court. California also has consumer protection laws that are specific to gym memberships/health clubs. Visit the Dept. of Consumer Affairs at http://www.dca.ca.gov/publications/legal_guides/w-10.shtml
I agree with Mr. Stone......also, your agreement is styled as a "12 month" agreement; I'd say your right to bill expired with the end of the 12-month period.
I agree with Mr. Whipple. The language of your contract suggests that it ends after 12 months. It could also be read as calling for automatic renewal each year, but that just means it is ambiguous. Ambiguities in a contract are resolved against the party that wrote it (you) and in favor of the other party.
Note that this customer may not be the last one you receive such a complaint from.
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