Legal Question in Credit and Debt Law in California
self-renewing contract
Three years ago, I paid for (check,
not credit card) a 3-year term with
my security company. The contract
expired in January, and I decided not
to renew it. I received no notification,
either letter or phone call, from my
security company that my service
term was coming to an end. I felt
that, since I only paid for 3 years, the
terms of my contract would expire
when the payment term expired (like
a magazine subscription). A couple
days ago, I received a letter from my
security company informing me that
they sent my contract to collection,
claiming that the contract is self-
renewing and that I am delinquent.
At this point, I don't know if they
want payment for another 3 years,
or for the 6 months outstanding. This
cannot be legal, can it?
2 Answers from Attorneys
Re: self-renewing contract
Read The Friendly Contract.
Self-renewing clauses in contracts are called "evergreen" clauses. If you are being robbed by your security company, try small claims court.
Re: self-renewing contract
Attorney Stone is correct - first you need to review your contract. If an evergreen clause is in there, then you are most likely stuck with it. If not, then you can argue that they have no basis for billing you.
*Due to the limitations of the LawGuru Forums, The Gibbs Law Firm, APC's (the "Firm") participation in responding to questions posted herein does not constitute legal advice, nor legal representation of the person or entity posting a question. No Attorney/Client relationship is or shall be construed to be created hereby. The information provided is general and requires that the poster obtain specific legal advice from an attorney. The poster shall not rely upon the information provided herein as legal advice nor as the basis for making any decisions of legal consequence.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
