Legal Question in Civil Litigation in California

Automatic Contract Renewal and Holder in Due Course

I have been receiving payments since 2004 for washer/dryers installed in my apartments. I have never signed a contract with this vendor and the original contract was signed by the former owner (two owners ago). The contract was signed by the prior owner in 1996 and automatically renews every five years unless cancelled within one month of the original effective date/month. It last 'renewed' in 1996 but I only recently was sent the contract by the vendor (when I asked for it). The vendor is asserting that I am the holder in due course and cannot cancel the contract until the next renewal date in 2011. Am I stuck with this vendor until 2011 or can I cancel this 'contract' early?


Asked on 3/28/08, 2:31 am

1 Answer from Attorneys
Terry A. Nelson Nelson & Lawless

Re: Automatic Contract Renewal and Holder in Due Course

Tell them to 'take a hike' and come pick up their equipment to avoid it being set out at the curb on trash day. I suggest to you that no court is going to enforce such outrageous contract, thus the company will not actually sue. Such companies scare people into paying.

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Answered on 3/28/08, 1:38 pm


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