Legal Question in Business Law in Massachusetts
I have had the same dumpster disposal company for the last 14 years. We signed a contract back in June 2001. At this point we would like to hire another company. I was told by our current company that we could not leave, if we wanted to we had to pay them $1400.00 for violating the contract. The contract says that we have to give them 180 days notice before the anniversary date of the contract and that the contract auto renews every 3 years. Is there a way out of this?
1 Answer from Attorneys
Yes, there is a limit on such terms of renewal. An attorney would have to review the agreement but such renewals are generally not allowed to automatically renew indefinitely. One issue however is the cost of defending the lawsuit or the cost of filing such a lawsuit.
I suggest you contact an attorney in your area to discuss the matter in more detail.
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