Legal Question in Business Law in New York
Back in 2008, my partner and I created a college planning business. To help us with a portion of the business, we outsourced our web page creation and its contents to a firm based in Lancaster, PA. One of the biggest mistakes that we made was signing a contract for 3 years. Both my partner and I personally signed the contract. After a year, we realized that the business wouldn't be successful and elected to shut it down. Due to our financial obligations for the web hosting company, we kept the business checking account open for the purpose of paying our monthly obligations to this firm. Since October 2008, this firm has been receiving $348 per month which was supposed to end in September of 2011. However, the firm has tried to continue to receive their money because of a clause in the contract that says we had to notify them between the 24th and 30th months of the initial contract that we would not be continuing or we would automatically be re-enrolled for an additional 3 years. We have not had any dealings with this firm and have attempted to speak with the owner but he says the contract enables him to collect this money for another 3 years. The business account has been closed and we were hoping to file the appropriate paperwork to close the business this January. Do we have any recourse with this subsequent 3 years? We did speak to him over 2 years ago but because we didn't notify him during the time frame the contract requested, he is holding this against us. Is there something we can do to get out of this "obligation" going forward?
3 Answers from Attorneys
Unfortunately, without examining the actual contract not much can be said. In general, the design firm's position in the matte is highly unorthodox and quite perplexing.. I urge you to consult an attorney who would be able to address the matter ASAP.
Feel free to contact my office at your earliest convenience.
Roman R. Fichman, Esq.
www.TheLegalist.com │ @TheLegalist
email: Info (@) TheLegalist (dot) com
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Disclaimer: This post has been written for educational purposes only and was not meant to be legal advice and should not be construed as legal advice or be relied upon. The post may contain errors, inaccuracies and/or omissions. You should always consult an attorney admitted to practice in your jurisdiction for specific advice. This post may be deemed as Attorney Advertising.
I agree with Mr. Fichman's response. Furthermore, you may want to consult an PA attorney since that is where the contract was signed.
Mike.
An attorney will expedite your final dealings with the company by provision of key communication indicating your closure of business and the lack of any assets that the IT company can pursue. I trust you have no personal exposure and the business was incorporated. The foregoing will simply put your mind at ease.
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